标题：Songcheng PerformanceCompany Visit Express：Expand multi-pronged presence
发布日期：2016-03-28 10:20:31
内容： Event: Songcheng’s senior executives, including its Chairman,its President,and the CEO of6Rooms, shared with investors their views on the plan to create an integratedentertainment ecosystem of “travel & leisure + live performances + Internet performances+ intellectual property (IP)” at the conclusion of a shareholders’ meeting on Tuesday.Comments: Songcheng’s Goals: To become the No. 1performing arts player and a Top 3 themepark operator globally. The maiden year of seeking a global presence - 2016. Songcheng is currently lookinginto major tourist destinations in North America, Europe, Australia, and Southeast Asia,and plans to start businesses outside China by kicking off overseas projects in the next1-2 years. The firm will seek to acquire U.S. peers and go on to produce shows featuringgood integration of the local culture by combining the talent pool and the marketing forceof the acquired companies and the creative innovation of Songcheng(for example,it isworking on a show by the name of God Bless America). Songcheng also has plans to setup “base stations” in overseas cities with a population of more than 2mn via independentinvestment, catering to strong consumer demand for culture-oriented tours, in an effort toaccelerate the pace of its globalization.Additionally,Songcheng will furnish its overseasprojects with new technologies and novelties, such as building a VR (virtual reality) themepark. Internet-based entertainment: A golden period is emerging amid outstandingperformance from 6Rooms. We believe the video streaming segment is coming into anage of rapid growth, as it will serve as a vital supplement to broadcasting via TV. Thegradual catch-up in industry regulation will benefit large players, in our view. Dataavailable thus far show that registered users of 6Rooms did not switched to otherproviders despite an increasing number of players in the segment. Additionally, 6Rooms iswell positioned to focus on R&D of new technologies given the handsome profits from the steaming services. Going forward, Songcheng and 6Rooms may consider jointly tappinginto the fields of VR and AR (Augmented Reality). We anticipate innovative products couldbe released in 3-4Q, which will likely support resilient earnings. Creating an all-girl idol group to gain exposure to intellectual property (IP) in thepresent age of always-on fans. Songcheng is currently recruiting candidates on a globalscale, until early April, for a female idol group that will go by the name of S518 (the firm’s20thanniversary falls on May 18, 2016). The firm will launch a variety show for the group todemonstrate their talents in acting, dancing and singing, paving the way for a potentialdebut in 2H16. In addition to acting in Internet-broadcast TV series, making appearances,concerts,and “handshake” events, the Songcheng girl group will also play a part in thefirm’s own shows at various projects. Visitors to the Songcheng theme parks tallied at atotal of 20mn, and on-site interaction with visitors at the theme parks, such as by theSongcheng girl group, will bode well for the firm, in our view. Earnings estimates and valuation. Songcheng has been our preferred andrecommended name since the start of the year for its solid fundamentals and sustainedM&A expectations. The Company guided 90-120% YoY growth in 1Q2016 net profit,which confirms our view that it is capable of sustaining high growth off a high base.Specifically, 6Rooms contributed net profit of c.Rmb55mn, more than previously guided.Net profit growth is estimated at 27%-56% YoY after excluding the contribution from6Rooms. We reiterate our 2016E-18E EPS estimates of Rmb0.65/0.86/1.05. BUYreiterated with our TP unchanged at Rmb42, as we foresee further headroom for growthgiven the high visibility on the firm’s strategic presence in intellectual property (the creationof a female idol group) as well as continued progress in the online/offline and domestic/overseas presence.
发布日期：2016-03-28 10:20:31
内容： Event: Songcheng’s senior executives, including its Chairman,its President,and the CEO of6Rooms, shared with investors their views on the plan to create an integratedentertainment ecosystem of “travel & leisure + live performances + Internet performances+ intellectual property (IP)” at the conclusion of a shareholders’ meeting on Tuesday.Comments: Songcheng’s Goals: To become the No. 1performing arts player and a Top 3 themepark operator globally. The maiden year of seeking a global presence - 2016. Songcheng is currently lookinginto major tourist destinations in North America, Europe, Australia, and Southeast Asia,and plans to start businesses outside China by kicking off overseas projects in the next1-2 years. The firm will seek to acquire U.S. peers and go on to produce shows featuringgood integration of the local culture by combining the talent pool and the marketing forceof the acquired companies and the creative innovation of Songcheng(for example,it isworking on a show by the name of God Bless America). Songcheng also has plans to setup “base stations” in overseas cities with a population of more than 2mn via independentinvestment, catering to strong consumer demand for culture-oriented tours, in an effort toaccelerate the pace of its globalization.Additionally,Songcheng will furnish its overseasprojects with new technologies and novelties, such as building a VR (virtual reality) themepark. Internet-based entertainment: A golden period is emerging amid outstandingperformance from 6Rooms. We believe the video streaming segment is coming into anage of rapid growth, as it will serve as a vital supplement to broadcasting via TV. Thegradual catch-up in industry regulation will benefit large players, in our view. Dataavailable thus far show that registered users of 6Rooms did not switched to otherproviders despite an increasing number of players in the segment. Additionally, 6Rooms iswell positioned to focus on R&D of new technologies given the handsome profits from the steaming services. Going forward, Songcheng and 6Rooms may consider jointly tappinginto the fields of VR and AR (Augmented Reality). We anticipate innovative products couldbe released in 3-4Q, which will likely support resilient earnings. Creating an all-girl idol group to gain exposure to intellectual property (IP) in thepresent age of always-on fans. Songcheng is currently recruiting candidates on a globalscale, until early April, for a female idol group that will go by the name of S518 (the firm’s20thanniversary falls on May 18, 2016). The firm will launch a variety show for the group todemonstrate their talents in acting, dancing and singing, paving the way for a potentialdebut in 2H16. In addition to acting in Internet-broadcast TV series, making appearances,concerts,and “handshake” events, the Songcheng girl group will also play a part in thefirm’s own shows at various projects. Visitors to the Songcheng theme parks tallied at atotal of 20mn, and on-site interaction with visitors at the theme parks, such as by theSongcheng girl group, will bode well for the firm, in our view. Earnings estimates and valuation. Songcheng has been our preferred andrecommended name since the start of the year for its solid fundamentals and sustainedM&A expectations. The Company guided 90-120% YoY growth in 1Q2016 net profit,which confirms our view that it is capable of sustaining high growth off a high base.Specifically, 6Rooms contributed net profit of c.Rmb55mn, more than previously guided.Net profit growth is estimated at 27%-56% YoY after excluding the contribution from6Rooms. We reiterate our 2016E-18E EPS estimates of Rmb0.65/0.86/1.05. BUYreiterated with our TP unchanged at Rmb42, as we foresee further headroom for growthgiven the high visibility on the firm’s strategic presence in intellectual property (the creationof a female idol group) as well as continued progress in the online/offline and domestic/overseas presence.
