After the announcement of Hubei Cable TV Network assets going public by borrowing the shell of Wuhan Plastics, the secondary market stock price of Shanghai satellite TV installation soared. Analysts believe that under the large background of the convergence of the three networks, cable TV network assets may welcome a value reevaluation. The last time the market was enthusiastic about cable TV networks was still ten years ago during the "IT boom."
Demonstration effect of provincial network listing: Under the large background of the convergence of the three networks, the cable TV network assets owned by the broadcasting and television industry have once again attracted market attention. A senior executive of a western provincial network company revealed to China Securities Journalist that since the beginning of this year, many investment institutions have gone to negotiate for business opportunities, mainly seeking to participate in provincial network companies. "As far as I know, the provincial network companies that have already completed the integration of provincial networks are all the darlings of many investment institutions."
Liao Xiaotong, vice president of CITIC Guoan who has been involved in the cable TV network industry for many years, believes that the provincial network is now favored by investors mainly because after the integration is completed, the provincial network directly controls users, the profit model is clearer, and the revenue expectation is more definite. Previously, as one of the earliest "gold prospectors" in the cable TV industry, CITIC Guoan generally participated in municipal-level cable TV network companies, and currently participates in 14 municipal-level cable network companies.
Following the requirement of the State Administration of Radio and Television to complete the integration of national provincial networks within the year, many provinces have adopted a model where existing shareholders of various municipal network companies hold shares and share incremental benefits. In this way, the shareholders of the previous municipal network companies have become shareholders of the newly established provincial network company. If the provincial network company goes public in the future, the equity appreciation space will be even greater. During this process of Hubei Provincial Network borrowing the shell to go public, CITIC Guoan ultimately held 12% of the listed company's shares due to previously holding 47% of Wuhan Broadcasting and Television.
According to Wuhan Plastic's additional issuance plan, CITIC Guoan participated in the additional issuance at a price of 10.4 yuan per share of Wuhan Broadcasting and Television equity, subscribing to 12% of Wuhan Plastic's shares, with a lock-up period of one year. "The current stock price of Wuhan Plastic is over 14 yuan, and it can be unlocked and cashed out after one year. This should be considered a pretty good investment for CITIC Guoan in the cable TV industry," a market person said, "the securitization of cable network assets can maximize shareholder interests, but the model of Wuhan Plastic borrowing the shell to go public may not be replicable."