The company disclosed its 2014 annual report.
Comments:
The performance is in line with our expectations. 1) in 14 years, the company achieved operating income of 558 million yuan and operating cost of 422 million yuan, down 5.96% and 12.6% respectively compared with the same period last year; the net profit attributed to shareholders of the listed company was 25.77 million yuan, which successfully turned losses into profits, corresponding to fully diluted EPS of 0.10 yuan, which is in line with our and market expectations (the company's performance KuaiBao expects a profit of 2640-31 million yuan) 2) the company made a net profit of 4.36 million yuan in the fourth quarter, compared with a loss of 127 million yuan in the same period last year. 3) the company plans to pay a cash dividend of 0.90 yuan for every 10 shares and increase 3 shares.
In the period of game + OTT transition, the income decreases temporarily. 1) the company transformed OTT intelligent Internet TV-related production in 14 years, and actively expanded in the game field, resulting in a reduction in traditional digital TV revenue, while the new industry is still in the expansion stage, providing less revenue, resulting in a decline in revenue. 2) although the adjustment of the company's business structure has temporarily reduced the revenue, the gross profit margin has increased by 5.8pct to 24.3%. It is expected that the gross profit margin will increase significantly after the rapid development of new business.
15 years of acquisition of Sky interaction, holding Minghe Minghe, layout of the game industry chain. 1) the company acquired Sky Interactive on February 3, 15 to fill its vacancy in mobile games, match the status of Xuehu Technology in video games, and strengthen the in-depth layout of content. 2) on February 3, 15, Minghe Minghe, a listed company controlled by the transfer of shares of its subsidiaries, is the top game video content provider in China. Its e-sports platform, the company's video game platform (Zhijia Tour) and media platform constitute a triangular three-dimensional game platform system with outstanding competitive advantages.
WCA+GTV constructs e-sports 's vertical industrial ecology. 1) by holding Minghe Minghe, the company controls Yinchuan Holy Land International, a WCA operating company. The content advantage of WCA lies in the low-cost content resources of e-sports, which is different from the core resources of live broadcasting platforms such as HUYA Inc. and DouYu International Holdings Limited, which is different from e-sports VJ (the top e-sports anchors will be further recognized in the future with the development value of the live broadcast industry, and the uncertainty of mobility increases) In the future, with the continuous improvement of the number and influence of WCA games (we think it is a high probability event), the content advantage will increase significantly. 2) the company also has GTV scarce TV channels, covering mainstream e-sports users, and cooperating with the company's own game content resources, it is not a dream to build a vertical ecology, reverse the derivative industry, and build a comprehensive e-sports platform! the transformation of OTT industry is a new breakthrough in the old business. In the past 14 years, the company's set-top box and other businesses have shifted from traditional digital TV equipment to Internet TV equipment, while the company's OTT box with GTV will further occupy the user entrance.
Profit forecast and investment rating. It is estimated that the company's annual fully diluted EPS in 15-16-17 is 0.13 shock 0.15 plus 0.17 (maintaining the pro forma profit forecast of 0.64 plus 0.75 plus 0.91 yuan), and the company's current share price corresponds to 360 plus 316,280 times PE for the same period. We continue to be optimistic about the company's mobile games + video game content technology, the content advantages of WCA and the layout of the whole game industry chain under the construction of GTV scarce TV channel resources, and maintain the "overweight" rating.
Risk hint: the integration of the industrial chain is slow; the growth rate of new business development is not up to expectations.
