Gehua Cable (600037) 2019 Interim Report Review: Strategic Transformation Steadily Advances Steady Growth of Company Performance

First, the event company achieved operating income in the first half of 201912.

20 ppm, an increase of 2 per year.

35%; net profit attributable to shareholders of the listed company is 4.

36 ppm, an increase of 19 per year.

20%; net profit of non-attributed mothers 2.

40 ppm, a decrease of 14 per year.

67%.

Second, our analysis and judgment In the first half of 2019, the company continued to promote strategic transformation, business development was stable, operating income grew steadily, profitability also improved, and overall performance was in line with expectations.

(1) The company’s performance has developed steadily, and the service quality has been continuously improved to the first half of 2019. The company’s registered users of cable TV are 597.

320,000 households, an increase of 2 from the end of 2018.

770,000 households; 537 HD interactive digital TV users.

310,000 households, an increase of 16 over the end of 2018.

860,000 households; home broadband online users 64.

70,000 households, an increase of 2 from the end of 2018.

40,000 households.

Against the background of the continuous loss of market share in the cable TV industry, the company’s performance has been steadily progressing due to the company’s reform and innovation development strategy.

At the same time, through comprehensive consensus on the work requirements of “receiving complaints,” the company has accelerated the optimization of distribution networks and two-way network transformation, and has effectively improved the quality of broadband to gradually consolidate and improve service levels, and is committed to creating a new “service quality improvement year.

(2) By using smart cities to achieve breakthroughs, the advent of the 5G era will drive companies to gradually transform into a broadband industry with limited digital advancement space, insufficient payment rates, and differences in regional network quality and other problems. Overlapping the 5G era, the industry will usher inSignificant development progress.

In line with the development trend of the industry, the company’s customer service represented by smart cities is a breakthrough and it continues to promote strategic transformation.

At the core of the report, the company continued to promote the Xueliang project in Tongzhou District, Changping District, Pinggu District, Wireless Beijing and other projects, constantly explored the construction of the Internet of Things cloud platform, and actively carried out smart meter reading business.

Actively participating in the construction of smart cities will help the company cultivate and create new sources of income and profit growth points, thereby leading the reform wave of the cable TV industry.

(3) Efforts to develop ultra-high-definition 无锡桑拿网 and Internet video content, and promote the development of new media business. The company will vigorously develop ultra-high-definition content. As of June 30, the high-definition interactive platform transmitted 184 digital television programs.

The number of online video-on-demand programs exceeded 150,000 hours, including high-definition and ultra-high-definition programs exceeding 80,000 hours, accounting for more than 55%, and weekly updates of 300 hours; the “4K Vision” zone updated a total of movies, TV series, records, music, and life700 hours of five categories of content, with a cumulative update of 1,200 hours.

At the same time, in order to further improve the overall user experience and reduce user churn, the company vigorously implemented a high-definition interactive set-top box replacement program, actively 杭州夜网 carried out 4K set-top box market replacement work, and laid the 4K UHD video service user base.

With the company’s strategic transformation from traditional media to full media, the company is expected to win a wider space for development.

Third, investment recommendations We are optimistic about the company’s competitive advantages in the field of 5G and ultra-high-definition video. It is estimated that the net profit attributable to the mother will be 7 in 19-20.

03 ppm / 7.

35 trillion, the corresponding EPS is 0.

51/0.

53, the corresponding PE is 19 respectively.

5x / 18.

8 times.

Fourth, the risk prompts the risk of the downturn of the limited TV industry, the risk of intensified market competition due to the impact of IPTV, OTT and new Internet media, and the risk of losing users in the cable TV industry.