Phoenix Media (601928) Coverage Report for the First Time: Publishing Growth Accelerates New Business Progressing Smoothly

Phoenix Media (601928) Coverage Report for the First Time: Publishing Growth Accelerates New Business Progressing Smoothly

Introduction to this report: The increase in the number of internal students in Jiangsu Province, the structural changes, and the increase in teaching materials to ensure the growth of publishing and distribution business documents, the layout of emerging industries such as smart education and data centers are progressing smoothly, and it is expected to become a new growth point for performance.

  Investment Highlights: First Coverage, Target Price 10.

98 yuan, increase the level.

The company’s teaching materials and general book publishing strength are strong, and the layout of emerging industries such as smart education, cloud computing, and cultural consumption complexes is rapidly advancing. EPS0 is expected in 2019-21.

61/0.

69/0.

7
8 yuan, giving a comparable company an average PE valuation of 18 杭州桑拿网 times in 2019, corresponding to a target price of 10.

98 yuan, the first coverage given an overweight rating.

  7
The publishing business is strong, teaching aids and general books are in an advantageous position.

The company has 6 national first-class publishing houses, ranking second in the country. Among them, Sujiaoshe ranks 1st in the comprehensive evaluation of the overall economic scale of local book publishing units, and Yilinsha has been ranked No.One, the Phoenix version of the standard textbooks totaled 23 kinds, education products covering 28 provinces across the country, more than 40 million students use, the number of varieties and market share ranked second in the country.

In terms of general books, according to the open book data, the market share of the overall book retail market of the company in H1 2019 has 南京龙凤网 shifted.

19%, ranked 3rd in the National Publishing Group; the code in the physical store channel retail market has a copy of 4.
.

63%, ranking second place; the code in the online store channel retail market occupies alternative 2.

93%, ranking third.

  8.

Smart education and the layout of emerging industries are rapidly advancing.

The company actively deploys smart education business around digital content, network platforms, software technology, and data management, and strives to build a large-scale, complete and rationally structured smart education industry chain.

The subject network is the website with the most abundant basic education resources in China, and its leading advantages continue to expand. At the same time, the company is actively deploying emerging industries such as cloud computing, cultural consumer complexes, and training, and the cultural industry ecosystem has begun to take shape.

The Phoenix Data Center was selected as the first batch of green data center pilot units in the country. Since its establishment, the revenue and profits have continued to grow rapidly. The second phase of the data center and the Xingang Data Center are actively pushing forward.

  9.

Catalysts: The publishing business maintained steady growth, new business developed smoothly, and the dividend rate continued to increase10.

Risk reminders: changes in market competition patterns, policy risks, risk of insufficient project reserves