标题：Oriental Pearl AlertAccess China conference highlights 2016
发布日期：2016-01-14 14:59:00
内容： 2016: a year of internet TV expansion Oriental Pearl (OP) reiterated its target to grow internet TV subscribers to 25mnby the end of 2016 (up by over 200% yoy vs. 8mn for 2015; 43% higher thanDBe of 17.5mn). The more aggressive-than-expected expansion may result inmore investment in content (OP aims to spend RMB1.5bn purchasing contentin 2016, up 200% yoy) and initial expenses. Nevertheless, managementreiterated that it is strategically crucial to build a scaled user base, in order tocapture the emerging internet TV opportunities. Also, the subscriber base willtransform into strong leverage into 2017, as OP gradually improves user ARPU,according to the company. On the B2B2C side, OP has initiated cooperationwith leading telecom companies in China to distribute its internet TV services.On the other hand (B2C), OP’s smart TV (Funshion TV) is now available, withvery competitive pricing. Management expects Funshion TV production to beloss-making at the initial stage but reiterated that this will have limited impacton OP’s financials as the production is done at MTC (002429.SZ, RMB8.52,NR). OP’s expansions will likely be rewarded on a mid-to-long-term investmenthorizon. We believe OP’s recent share price correction reflects some investors’concerns over potentially-higher expenses during the expansion stage.Nevertheless, we believe OP is well-positioned to enjoy the robust internet TVgrowth in China thanks to its diverse business resources, better complianceand unique channels. We continue to expect strong leverage against fixedcosts once OP starts to deliver more scale.
发布日期：2016-01-14 14:59:00
内容： 2016: a year of internet TV expansion Oriental Pearl (OP) reiterated its target to grow internet TV subscribers to 25mnby the end of 2016 (up by over 200% yoy vs. 8mn for 2015; 43% higher thanDBe of 17.5mn). The more aggressive-than-expected expansion may result inmore investment in content (OP aims to spend RMB1.5bn purchasing contentin 2016, up 200% yoy) and initial expenses. Nevertheless, managementreiterated that it is strategically crucial to build a scaled user base, in order tocapture the emerging internet TV opportunities. Also, the subscriber base willtransform into strong leverage into 2017, as OP gradually improves user ARPU,according to the company. On the B2B2C side, OP has initiated cooperationwith leading telecom companies in China to distribute its internet TV services.On the other hand (B2C), OP’s smart TV (Funshion TV) is now available, withvery competitive pricing. Management expects Funshion TV production to beloss-making at the initial stage but reiterated that this will have limited impacton OP’s financials as the production is done at MTC (002429.SZ, RMB8.52,NR). OP’s expansions will likely be rewarded on a mid-to-long-term investmenthorizon. We believe OP’s recent share price correction reflects some investors’concerns over potentially-higher expenses during the expansion stage.Nevertheless, we believe OP is well-positioned to enjoy the robust internet TVgrowth in China thanks to its diverse business resources, better complianceand unique channels. We continue to expect strong leverage against fixedcosts once OP starts to deliver more scale.
