San Aifu (600636): Over 10 years of education informatization in Ovia has been leading the industry in 4K recording and broadcasting and a series of products
Acquired Ovia and entered the field of education informatization.
The company announced in 2016 that it planned to acquire 100% of Ovia’s equity with cash of 1.9 billion. The related transaction was completed in early 2018. The company’s business was changed to the dual main business of culture and education and fluorine chemical industry. Ovia was an education business.The main carrier.
In the first three quarters of 2018, the company achieved operating income13.
49 trillion, a reduction of 67 a year.
5%; net profit attributable to mother 5.
44 ppm, an increase of 350 per year.
6%; net profit after deduction is RMB 93合肥夜网.92 million, a decrease of 37 per year.
Of which, the wholly-owned subsidiary Ovia achieved operating income2.
50 ppm, a ten-year increase3.
45%; net profit attributable to mother 1.
24 ppm, an increase of 11 years.
56%, the education sector’s performance grew steadily, contributing to the main source of profit.
Policy dividends and the rise of Internet education are driving industry development.
1) In terms of policy, education informatization is a key means to solve the problem of imbalanced education resources. Since 2010, the state has issued a diversified policy to rapidly promote the construction of education informatization.
The “Operation Plan of Action 0” was issued, which is the latest signal released at the policy level regarding education informatization.
2) On the demand side, the continued 北京养生会所 growth of fiscal budget expenditure and the demand for value-added services on the C-side of education informatization drive the development of the industry.
Budget, the national fiscal education budget accounted for more than 4% of GDP for 6 consecutive years. It is estimated that the proportion of education informatization budget in education budget is not less than 8%. The budget of education informatization in 2017 is not less than 2731 trillion.In 2020, the budget for education informatization may reach 386 trillion; by 2020, the potential market size of the C-end of K12 education informatization is 212 billion.
Alvaia has been deeply involved in the field of education informatization for more than ten years. Three major advantages have helped the business to develop strongly.
1) Background of shareholders of central SOEs.
After the reorganization was completed, the company’s controlling shareholder was changed to China Wenfa, which is a specialized platform for the SASAC system to invest and operate in the cultural industry, and has a natural advantage in integrating high-quality assets in the industry.
Ovia has an endorsement by the central enterprises with the culture and education industry as its main business, which is conducive to integrating the resources of the education industry to expand the business of the culture and education sector.
2) Independent research and development strength.
Ovia ‘s main core products have been independently developed, and have a complete set of independent intellectual property rights for software and hardware products. Since the release of the distributed recording and broadcasting system in 2005, technology and products have continued to evolve, and they have pioneered the introduction of a number of innovative educational video recording and broadcasting.Products, the market share of education informatization recording and broadcasting products ranked first in 2017, with sufficient momentum for follow-up development.
3) Business model change, upgrade from “TO B” to “TO G”.
After dating the background shareholders of central SOEs, Ovia changed its role from the previous single recording and broadcasting supplier to the role of regional investment construction operator, and the client also changed from the previous school (to B) to the government (to G).
At the same time, Ovia actively cooperates with the Internet and emerging companies to promote the in-depth application of artificial intelligence technology in the field of education informatization.
Under the development plan of the ultra-high-definition video industry, Avia’s 4K recording and broadcasting technology and series of products will benefit.
The “Ultra HD Video Industry Development Action Plan (2019-2022)” on March 1 requires that by 2022, the overall size of the internal ultra HD video industry exceeds 4 trillion yuan, the 4K industry ecosystem is basically complete, and 8K key technology product research and developmentAnd breakthroughs in industrialization.
In 2018, Ovia developed and introduced the industry-leading 4K recording and broadcasting technology and normalized recording and broadcasting products, and launched a supporting 4K-SDI transmission method to solve the problem that 4K video cannot be transmitted over long distances.
At present, 4K products in the ultra-high-definition video industry have not yet been popularized, but there is an industrial basis. Under the development plan of the ultra-high-definition video industry, Ovia ‘s 4K-related audio and video technologies and series products have benefited.
Investment suggestion: A wholly-owned subsidiary, Ovia, has been deeply involved in the industry for many years. It is a leading company in the field of education informatization and has the largest market share of self-developed education recording and broadcasting products.Broadcasting supplier, transformed into a more comprehensive regional smart education overall solution provider; At the same time, Ovia has achieved a certain technological breakthrough in the field of 4K audio and video products and data transmission, is expected to achieve business expansion, and the momentum for subsequent development is sufficient.
Net profit of listed companies is expected to be 2 in 2019/2020.
RMB 860,000, EPS 0.
64 yuan, corresponding to 30/25 times the current budget PE.
Using the segment estimation method, we will give 35 times the target PE for education and cultural business and 15 times the target PE for fluorine chemical business in 2019, corresponding to a target price of 17.90 yuan, covering for the first time, give “Buy-A” rating.
Risk reminder: the competition in the industry is intensifying, the brain drain, the technology gradually exceeds expectations, and the risk of fluctuating fluorochemical product prices.