Main points of the report
Event description
The company released its 2014 report that the operating income was 558 million yuan, down 5.96% from the same period last year, and the net profit attributed to the parent company was 25.7728 million yuan, an increase of 121.24% compared with the same period last year. At the same time, the company plans to transfer 59.04% of its stake in Shenzhen Ruisen Technology to Shenzhen Xuxun Technology at a transfer price of 41.3 million yuan.
Event comment
The performance reversed as scheduled, and the operating efficiency improved significantly: the company's revenue in 2014 was 558 million yuan, down 5.96% from the same period last year, mainly affected by the adjustment of overseas sales business; the net profit was 25.7728 million yuan, an increase of 121.24% over the same period last year, turning losses into profits as scheduled, which is caused by the elimination of Harvard international drag factors. Achieved a comprehensive gross profit margin of 24.34%, a sharp increase of 5.8% over the same period last year, and a sharp drop of 3.54% in fees during the period; the net cash flow of operating activities increased by 611%, and the ability to recover money and control funds was significantly enhanced. In addition, the company has paid 310 million yuan in advance for the construction of the Internet of things, focusing on smart home, intelligent security, intelligent medical and other areas, which is expected to lay a solid foundation for building a pan-family Internet ecology.
The three strategies are advancing steadily, and the business structure is continuously optimized: the company actively promotes the implementation of the three strategies of consumer electronics, cloud media platform and game industry, in order to seek a broader growth space. In terms of consumer electronics, Harvard International's classic brand "GOODMANS" is about to launch in the domestic market; in terms of cloud media, "Jinya enjoy watching" wifi-TV video service has launched commercial operations in Chongzhou and other cities, and wheat straw imagination acceleration services based on mobile Internet are also being rolled out in many places. In 2015, it is expected to achieve daily coverage of 100 million mobile terminals, creating more than 1 billion of new media value. In terms of the game industry, the company's content terminal Chengdu Xuehu 3D mobile game "Hot Blood College" will be launched soon. At the same time, the company's business structure will be further optimized after the divestiture of its 59.04% stake in Rosen Technology.
The whole industry layout of "content + platform + Terminal" has taken shape, and the value of scarce logic has been enhanced: by holding Minghe Minghe and Yinchuan Holy Land, the company has realized the integration of proprietary media channels such as WCA and GTV, the top competition resources, and its huge potential copyright operation value and derivative commercial value are expected to be fully released. After the inclusion of Sky interaction, the game industry-wide closed loop covering TV / mobile game research (content), e-sports event operation / event live broadcast (platform), game hardware (terminal) will be completed, which is quite scarce in A share. Continuous strong recommendation: the company's performance reversal has been established, and the layout of the whole industry chain has basically taken shape. The proposed acquisition of Sky Interactive and holding Minghe will contribute to a high profit benchmark for the company, significantly improve the margin of safety, and further highlight the value of driving investment. It is expected that the exam preparation EPS for 2015 and 2016 will be 0.77 yuan, 1.03 yuan and 1.34 yuan respectively, which will be strongly recommended.
