Zhaoxun Media: 15 years of intensive efforts to achieve high-speed railway digital media strong competitive advantage

2022-06-25 0 By

Zhao Xun Media Advertising Co., LTD. (stock: Zhao Xun Media, stock code: 301102), known as “the first stock of high-speed railway digital media”, was listed on gem today.For this leading enterprise of high-speed railway digital media advertising, investors not only need to understand its existing success path and business performance, but also need to understand its innovation ability and growth prospects, so as to make a scientific judgment on its investment value through comprehensive analysis.According to the prospectus, Zhao Xun Media had a unique insight into the digital media business opportunities of high-speed rail as early as 2007, before the birth of China’s high-speed rail.Compared with airport media, gas station media and hospital media, railway media have the advantages of large passenger flow and high reach rate.More importantly, China’s railway development planning and railway media industry upgrading path are consistent.In 2004, medium and Long Term Railway Network Planning first proposed the construction of “four vertical and four horizontal” passenger dedicated lines and required innovation in high-speed railway equipment, electrification and other technologies. As the proportion of business travelers with high consumption power gradually increased, the value of railway media communication continued to rise.It can meet the brand communication needs of large advertisers such as real estate, automobile, jewelry and consumer goods.Based on such a development forecast, Zhaoxun Media and each railway bureau group signed a medium – and long-term agreement, the installation and construction of digital media resources all over the country, and through digital technology upgrading, to achieve large-scale intelligent operation, so as to establish a higher competition barrier.The industry development track that holds water from the company 2007 up to now looks, the business judgment of management of medium of zhao zhao proves fact is more accurate.The company not only successfully entered the field of railway media, and has become one of the pioneers of high-speed railway digital media.At present, the number of media resources and coverage of the company are in the leading level in the high-speed railway digital media advertising industry, and the company has become a high-speed railway digital media operator with the highest influence in the industry, providing customized advertising services for customers nationwide.The company’s business performance is also booming.From 2018 to 2020, the company achieved operating income of 375 million yuan, 436 million yuan, 488 million yuan respectively, and net profit of parent was 159 million yuan, 192 million yuan, 208 million yuan respectively.In the first half of 2021, the epidemic situation in China gradually improved, and the company’s business expanded well, achieving an operating revenue of 243 million yuan and a net profit of 83.096 million yuan, both of which maintained growth.The vigorous development of Zhaoxun Media is sustainable, which benefits from the strong market competitive advantages formed by the company through independent innovation, among which the high-speed railway digital media network advantages, digital operation advantages and brand advantages are more prominent.Since its establishment in 2007, the company has rapidly completed the layout of railway passenger stations across the country.In August 2008, the beijing-Tianjin intercity railway, the first high-speed railway in China, was opened to traffic. The company immediately started to lay out the digital media resource network of high-speed railway, and participated in the design and construction of digital media resource sites of high-speed railway stations, which established a good cooperation foundation with various railway administration groups and obtained the first-mover advantage.After more than ten years of operation and accumulation, the company has signed media resource use agreements with 17 of the 18 domestic railway administration groups except Urumqi Bureau Group, signed 558 railway passenger stations, operated 5,607 digital media screens, and built a high-speed railway digital media network by point and surface, line and line intersection.The core advantages of the high-speed railway digital media network established by the company are reflected in its breadth and depth of coverage. In the last year, the income of customers who choose national package accounts for more than 50%, which makes it difficult for new competitors to copy or overturn the high-speed railway digital media network established by the company in a short time.The company started digital construction early, accumulated rich experience in construction and stable operation, has a strong digital operation advantage.Through the information system platform, the company can network digital media equipment and carry out digital remote control, so as to achieve one-click publication change, which can not only ensure efficient and safe publication and broadcast, but also meet the precise, differentiated, flexible and diverse advertising needs of customers.As one of the earliest and most professional high-speed railway digital media operators in the field of high-speed railway media, the company has a high brand awareness in the downstream of the industry with more than ten years of business accumulation and quality services.Since its inception, the company has won the “national cultural industry demonstration base”, China advertising association “media service class level advertising enterprises” qualifications, “China’s most high-speed media propagation force”, “China outdoor communication conference outstanding enterprise”, “annual advertising influence TOP media”, “TOP 500 Asian brands”, “TOP outdoor media company” and many other honors.As the company has formed a strong market competitive advantage through independent innovation, it has a high bargaining power in the market. Compared with comparable listed companies in the same industry, the gross profit margin from 2018 to 2020 and the first half of 2021 is higher than the average.The advertising industry in which Zhaoxin Media is located will usher in greater development opportunities in the future, among which high-speed railway digital media has the tendency of coming behind.In recent years, China has issued a series of policy documents to encourage the development of the advertising industry, creating a good policy environment for the rapid and stable development of the advertising industry.For example, the Outline of the National Cultural Development and Reform Plan during the 13th Five-Year Plan period in 2017 proposed to optimize the structural layout of the cultural industry and promote the transformation and upgrading of traditional industries including advertising services.As the digital economy has become the core driving force for the high-quality development of China’s economy, the rapid development of digital media in the advertising industry has become the mainstream of the industry, and the rapid development of digital media has also provided a strong driving force for the advertising industry.High-speed railway digital media advertising is an outdoor digital media produced with the continuous development of China’s high-speed railway construction.By the end of 2019, China had 35,000 kilometers of high-speed rail, according to the 2019 Statistical Bulletin on Railway Industry Development.The strategy of becoming a Transportation power in the new Era proposed by the 19th National Congress of the Communist Party of China (CPC) and the medium and long term railway Plan of the New Era (2035) are now under preparation, which is expected to bring good development opportunities to the high-speed railway digital media advertising industry.According to CTR advertiser Marketing Trend Survey report, with the rapid growth of high-speed rail passenger flow, high-speed rail advertising is more and more recognized by customers, and the proportion of high-speed rail advertising in outdoor media is increasing day by day. In 2018, the number of outdoor media advertisers choosing high-speed rail/train advertising increased the most, reaching 8.4%.Higher than outdoor media advertisers choose to put other outdoor types.Zhaosen Media plans to firmly grasp the great opportunities in the urbanization process and high-speed rail construction in China in the next three years, and further expand the construction of railway media platforms based on high-speed rail, bullet train and intercity high-speed.At the same time, we should grasp the huge development space brought by the transfer of China’s economy from export to domestic consumption and from the first and second industries to the third industries.From zhaoxun Media’s 15 years of development, the company has a forward-looking analysis and judgment of the advertising industry, its independent innovation ability is strong, the rapid growth of business performance, investors have reason to remain optimistic about the company’s future development.This article comes from digging shell net