Sina tip: This is a column of individual stock comments. It is only the personal opinion and analysis of securities consultants on relevant individual stocks or sectors, not a formal news report. Sina does not guarantee its authenticity and objectivity. Investors will operate accordingly at their own risk. Please refer to the announcement of Shanghai and Shenzhen Stock Exchanges for all accurate information about the shares. Changjiang Securities Chen Zhijian
Key points of the report. Event description September 19, letv A press conference was held to announce the entry into the TV market, and LeTV TV Super TV will be launched. At the same time, LeTV released an announcement, and the Board of Directors deliberated and passed the Proposal on the Company's "Entering the TV Market and Launching Self owned Brand TV". The Company will carry out LeTV related product research and development, design, operation and sales and other Internet TV businesses through its holding subsidiary, LeTV Zhixin Electronic Technology (Tianjin) Co., Ltd., with a new capital increase of no less than 100 million yuan to LeTV within 12 months, The product will be launched to the market in the next 9 months, and the project investment will be about RMB 5-1.5 billion in 1-2 years.
Event comments. The whole industrial chain system of "platform+content+terminal+application" is becoming more and more perfect, realizing multi screen coverage of PC, pad, mobile phone and TV screen: LeTV will inject assets and some cash related to LeTV TV business into LeTV Zhixin, which will become LeTV's strategic executor in the field of Internet TV. LeTV has originally covered PC, pad On the basis of mobile screen, through the launch of Internet TV, the last screen was covered under the whole industry chain system of "platform+content+terminal+application", laying the foundation for one cloud and multiple screens.
The emergence of LeEco Internet TV will magnify LeEco's advantages in copyright content resources. On the content side, LeTV has established the industry's most comprehensive film and television copyright library, with 90000 episodes of TV dramas and 5000 movies of online copyright, and has provided LeTV with rich content support through "LeTV Homemade" and LeTV Movie. Internet TV will become a new window for content resources, realizing the amplification effect of content resources advantages.
Internet TV is expected to become a new profit growth point and relieve the pressure of copyright distribution business: the rising cost of copyright purchase, a large base, the scale of copyright expense amortization and the rapid rise of broadband resource costs limit the company's future growth rate. Internet TV has four revenue sources, namely, "hardware revenue+content revenue+application sharing+terminal advertising", It is expected to become a new performance support and relieve the pressure of copyright distribution.
Investment advice: We expect the company's EPS in 2012, 2013 and 2014 to be 0.54 yuan, 0.75 yuan and 1.08 yuan respectively, and the current share price corresponds to PE in 2012, 2013 and 2014 to be 42 times, 30 times and 21 times respectively, maintaining the "recommended" rating.
