Zhongtai Securities has released a research report stating that amid shifts in the global economic landscape and the advancement of emerging technologies like AI, the HALO asset framework is prompting a renewed evaluation of the value of scarce assets, along with a fresh analysis of their advantages and worth. The firm believes that within the publishing industry, both central state-owned and local state-owned publishing groups possess HALO asset attributes. The investment rationale is based on the stable, continuous cash flow and high dividend yields from their core operations serving as a ballast for investments, offering strong resistance to volatility. On this foundation, the report is optimistic about the potential for value revaluation of publishing companies' physical store networks and authoritative content assets. The firm favors investment opportunities in companies with well-established offline distribution systems and distinct content advantages in vertical sectors. Zhongtai Securities' main views are as follows:

Heavy Assets: Publishing companies' core businesses are stable with strong continuity; potential seen for revaluation of offline space value. The businesses engaged in by publishing companies, especially local state-owned publishing groups, such as textbook publishing and distribution of state-approved educational materials, are subject to stringent administrative entry barriers and regulations, creating significant qualification hurdles that build long-term operational safety cushions. Their Xinhua bookstore assets, serving as publication distribution outlets, have clear positioning and functions. The related business operations highly depend on these offline networks, ensuring strong operational continuity and helping maintain healthy cash flow (most companies hold cash reserves of 70-120 billion yuan on their books). Furthermore, these store locations are often in prime areas, with book values significantly lower than market appraisals (average book value is 8,000-10,000 yuan per square meter), indicating substantial hidden value. The report is optimistic that through spatial upgrades and the development of new educational and cultural formats, efficiency per square meter can be enhanced, driving value revaluation.

Low Obsolescence Rate: Scarcity of authoritative content from publishing companies is prominent; potential seen for reshaping asset pricing logic. Reviewing the valuation trend of The New York Times in recent years reveals a fundamental reshaping of its pricing logic. The scarcity of authoritative content is pushing its valuation benchmark higher, with its PE-TTM valuation gradually increasing from a low of 25-26x in 2025 to 35-40x. The core of this pricing shift lies in its commitment to content investment during an era of information overload driven by rapid AI development, thereby consolidating its credibility advantage. It has completed a business model iteration, transitioning to a subscription-driven model, and built a platform centered on content credibility, achieving growth in both user scale and per-user value. Zhongtai Securities believes the narrative of The New York Times' business model upgrade and pricing logic change could potentially be replicated by domestic publishing companies with substantial authoritative media asset reserves. These companies have relatively clear content copyright ownership and distinct advantages in vertical content. Their accumulated credibility, scarce professional content production capabilities, content authority, and mindshare among vertical users are expected to endure across multiple technological cycles, including the internet and AI, becoming core underlying assets for sustained development. Simultaneously, publishing companies are accelerating the exploration of new monetization paths such as knowledge services, with positive outlook for continued content value extraction.

The report suggests focusing on companies with significant regional advantages and potential for ongoing channel value挖掘: Shandong Publishing (601019.SH), Central China Media (000719.SZ), Changjiang Media (600757.SH), Phoenix Media (601928.SH), Zhongnan Media (601098.SH), Southern Media (601900.SH), Xinhua Winshare (601811.SH), Zhejiang Publishing & Media (601921.SH), Wanxin Media (601801.SH), Inner Mongolia Xinhua (603230.SH), Chinese Media (600373.SH), City Media (600229.SH), among others. Companies with substantial media asset reserves and prominent vertical content advantages include: CITIC Press Group (300788.SZ), Southern Media (601900.SH), China Science Publishing & Media (601858.SH), China Publishing Group (601949.SH), Time Publishing & Media (600551.SH), Reader Media (603999.SH), Royalwise Culture (301231.SZ), among others.

Risk warnings include policy risks related to cultural regulation, slower-than-expected development of AI technology, changes in preferential policies for state-owned media enterprises, and risks associated with outdated information or data used in the research report.