During the period from the eleventh five year plan to the fourteenth five year plan, relevant policies have been issued continuously, and the precise positioning of the radio and Television Department has been further deepened.
1) in terms of basic public service construction, radio and television has changed from "village to village" to "household", and then to "everyone through smart radio and television", which reflects the country's determination to realize that all citizens can enjoy the basic public services of radio and television through mobile terminals.
2) in terms of business integration and upgrading of radio and Television Department, from the national strategy of "integration of three networks", to "integration of national network and one network", and then to the issuance of 5g license, the SARFT hopes to improve the lagging development of radio and television industry and enter the 5g telecom market.
After the integration of national one network, China Radio and television has accelerated the development of 5g potential market. In 2021, China Radio and television and China Mobile will jointly build and share 2 Shenzhen Fountain Corporation(000005) g base stations. In 2022, China Radio and television mobile network Co., Ltd. will be incorporated and section 192 will be distributed on a large scale, which means that China Radio and television will accelerate the commercial layout of 5g; At that time, radio and television will steadily carry out personal communication business and actively expand 2B vertical business. In the competition with other three operators, China Radio and television has entered the communication market with three advantages:
1) the unique positioning and attributes of China Radio and television mean more national policy support and wider business extension space;
2) China Radio and television has the right to use 700MHz frequency band, which has become an important advantageous resource for the development of 5g radio and television;
3) 5gnr broadcasting business may become the competitive business of 5g development of China Radio and television.
Under the requirements of rural revitalization, smart radio and television will go deep into the rural market in two steps.
From 2021 to 2022, relevant policies on smart radio and television service for Rural Revitalization were intensively promulgated at the national level, and some provinces and regions have laid out the development route of smart radio and television service for Rural Revitalization in advance. With the further development of China's rural economic growth, "smart radio and television +" model can become a powerful starting point for Rural Revitalization on the one hand, and promote the vigorous development of radio and television tog business on the other hand. From the specific development path, smart radio and television will be integrated into Rural Revitalization in two steps:
1) the first step is to improve the comprehensive coverage and digital transformation of infrastructure such as border consolidation project, bright project and emergency broadcasting construction with the goal of helping rural governance and construction;
2) in the second step, the provincial network companies will develop their own new businesses in a differentiated manner, aiming at the revitalization of smart radio and television industry and public services, and carry out integrated businesses in many aspects, such as distance education, grass-roots medical care, consumer e-commerce, cultural tourism and so on.
The prosperity of the radio and television sector has been rising, and the changes in fundamentals will profoundly change the traditional income structure. It is expected that the new business will rise by more than half within five years. Under the background of the 5g construction of radio and television and the continuous promotion of smart radio and television business, the fundamentals of the radio and television industry have undergone fundamental changes. It is expected that after the scale of new business, the new business income of listed companies will account for more than half in the next five years. In particular, the combination of smart and customer business will make the development of smart radio and television companies more flexible in the future, especially in the field of radio and television. Meanwhile, in 2022, radio and television 5g officially entered commercialization. On the one hand, radio and television 5g personal communication business gradually occupied the market share, which is expected to bring 100 billion revenue increment in five years; On the other hand, 5g's broad application space brings unlimited possibilities for tob business innovation of radio and Television Department.
Investment suggestion: according to our 2022 strategy report, in the media sub sector in 2022, radio and television is the most flexible because it takes the lead in clearing out. At present, the radio and television business is entering a period of deep transformation, with profound changes in fundamentals. The dual driving forces bring business extension space and performance flexibility space. From the perspective of how much companies listed on State Grid are integrating to participate in the integration of companies listed on State Grid, and the speed of business transformation, it is suggested to focus attention on companies that have high integration participation in State Grid, 5gbusiness is leading in 5g business, and accelerate the revitalization of smart radio and television service villages, such as Tsingtao Brewery Company Limited(600600) Tsingtao Brewery Company Limited(600600) 37 Shenzhen Topway Video Communication Co.Ltd(002238) , Shaanxi Broadcast & Tv Network Intermediary(Group)Co.Ltd(600831) , Jishi Media Co.Ltd(601929) , Hunan Tv & Broadcast Intermediary Co.Ltd(000917) , etc.
Risk warning: the progress of national one network integration is less than the expected risk; 5g construction and commercial progress is less than expected risk; Competition among operators has intensified.
