People’s Network (603000): Content originality advantage + mainstream platform influence + content technology achieves social and economic benefits, both benefit from the rapid development of the content risk control industry

People’s Network (603000): Content originality advantage + mainstream platform influence + content technology achieves social and economic benefits, both benefit from the rapid development of the content risk control industry

Event: The company announced a three-year plan for in-depth integration development (outline): 1. Planning objective: to consolidate the “leading” of the key news website of the central government, strengthen the “leading” of Internet content risk control, and gradually develop into a leader in content technology (ConTech).

By April 2022, it will become the highest quality original content provider, covering all mainstream content distribution channels, and become the most important content operation platform, risk control platform and aggregation platform on the Internet.

2. The company will develop all-round development around party building, talent team building, content capacity building, career development capacity building and support system building.

In the development of career development capacity, we focus on the main business of the content, focus on new operations such as content operation, content risk control, and content distribution, and lay out key projects in the Internet industry and media field around the main business.

3. The company has a stake in People’s Zhongke (Shandong) Intelligent Technology Co., Ltd., which closely combines the artificial intelligence technology of the Institute of Automation of the Chinese Academy of Sciences and the content risk control capability of People’s Network to build the company’s artificial intelligence technology engine in the next three years;”State Key Laboratory of Intelligent Cognition”.

Opinions: 1. The company, as the People’s Daily holding news, is mainly an online information interaction platform, which has a penetrating social influence. It serves as the “flagship” of the People’s Daily and People’s Daily’s media integration and development, maintains the original content advantage, and is committed to content industry innovationTo enhance the value of the platform.

In 2018, the People’s Daily Network’s strategic layout in video, third-party auditing, and big data has established people’s audio-visual, people’s information, and people’s data subsidiaries.

In the advertising business, strengthen the development of mobile, social, video, vertical platforms and other fields to achieve steady growth of the advertising business; adjust the structure of mobile value-added services, reduce the occupation of traditional business resources such as mobile phone reading, and focus on developing mobile content risk control services.

18 years total income 16.

900 million (YoY + 21%), net profit attributable to mother 2.

100 million (YoY + 139%); of which, advertising advertising services income 7.

800 million (YoY + 33%), accounting for 46%; income from information services4.

400 million (YoY + 25%), accounting for 26%; mobile value-added income3.

10,000 yuan (YoY-18%), accounting for 19%; other business income1.

600 million yuan (+ 99% year-on-year), accounting for 9% of total revenue.

2. The company focuses on the Internet industry, and new businesses such as content risk control are developing rapidly. The business model has gradually matured and has begun to take shape.

In 2018, People’s Daily launched a “third-party content review platform”, which conducted preliminary explorations on platform construction, standard formulation, and technology research and development.

Customers who have already cooperated include: Shenzhen Quantum Cloud Technology Co., Ltd., Toutiao, Pear Video, Migu Culture and other content startups, as well as China Mobile and Alibaba Cloud.

The content risk control business revenue in 2017 was 15.81 million yuan (accounting for 17 years of revenue1.

13%), with a growth rate of 166% in 2018.

3. The company’s technology endeavors, in cooperation with the Institute of Automation of the Chinese Academy of Sciences, to create artificial intelligence in the background and reduce labor costs; to build the “State Key Laboratory of Media Intelligence Cognition” to enhance the field of content risk control.

Under the development trend of media integration, the company, as a supporting unit, plans to build the State Key Laboratory of Media Intelligence Cognition.

The laboratory will formulate mainstream evaluation algorithms and precise dissemination, content intelligent review and risk control levels, and national cyberspace governance based on content dissemination.

4. The content risk control industry is in the early stages of development and has a trend of specialization, scale, and industrialization. The industry scale will continue to expand with the development of the Internet content industry.

As an old-fashioned media, People’s Daily Online has a natural advantage in the content risk control industry, especially in government-related detection scenarios where the pricing is relatively high. Internet companies tend to provide technical services and have a convergent development trend.

① The rapid growth of the Internet content industry, frequent content security incidents, stricter regulatory policies, content audit requirements and overviews are standardized in advance.

“Network Short Video Platform Management Specification” and “Network Short Video Content Audit Standard Specification” regulate the short video transmission level from the two standards of institutional control and content audit, and propose operational audit standards.

② The content risk control object is the full-range content of the Internet platform. The key audit content is UGC. The risk content is determined to have a blurred boundary. The audit mode is a combination of technology and manual mode.

③Participants: The traditional conventional media expands the content business chain, has a natural gene in the content risk control business, has an advantageous foundation in staffing, content auditing experience, especially the relatively high-priced government-related detection; Internet companies have technologyAnd data advantages.

④ Pricing mechanism: There are differences in pricing models, specifications, and price levels.

Politics-related content scenarios have a relatively high level of pricing, 1-5 times the pricing for other content scenarios.

Internet companies use content volume ladder pricing as the mainstream model; package packaging and coexistence with customization; traditional media basically use the B-end customer customization model for content review.

⑤ Measurement of content risk control market space: Assume that content risk control investment accounts for 2% of the Internet content industry. According to the size of the Internet content industry in 18 years, the content risk control market space is 162.

400 million; with the development of the Internet content industry, the content risk control market will continue 北京夜网 to expand.

5. Profit forecast: We estimate that the company’s net profit attributable to its mother in 19-21 will be 3 respectively.



470,000 yuan, the corresponding EPS is 0.27/0.


40 yuan, corresponding to PE of 63/52 / 42X, given a “recommended” rating.

Risk warning: policy change risk, Internet content industry policy change, content review related policy change; industry development progress and development level are not up to expectations, industry space expectations; industry competition pattern change risk, participation in rapid growth, intensifying industry competition; technology progress risk.