Event description
The company issued a forecast for the first quarter of 2015, which is expected to achieve a net profit of 7.1 million yuan to 7.7 million yuan attributed to the parent company, an increase of 207.53% 233.52% over the same period last year.
Event comment
The business reversal has been confirmed again, and the margin of safety has improved significantly: the company's net profit in the first quarter of 2015 was 7.1 million yuan to 7.7 million yuan, an increase of 207.53% and 233.52% over the same period last year, which once again confirmed our judgment on the reversal of the company's performance. Harvard International's loss in 2014 has dropped to 2.2093 million yuan, and its operation has improved significantly. With its classic brand "GOODMANS" landing in the domestic market, it is expected to turn losses into profits this year. Driven by the live broadcast of WCA2015 events and the launch of local radio and television games, the performance is expected to exceed expectations. Celestial phenomena interactive "WLWZ", "HQG", "BGYX" and other blockbuster products will be launched one after another, and it is expected that the performance commitment will be exceeded. We believe that the company's endogenous reversal has been established, the profit benchmark has been greatly improved, and the margin of safety is still obvious.
The pace of strategic transformation has been accelerated, and the development trajectory is clear: the company has accelerated the pace of strategic transformation of consumer electronics, cloud media platforms, and the game industry, and divested 59.04% of Rosen Technology, which does not meet the new strategy. The asset structure has been further optimized. In terms of consumer electronics, Shenzhen Jinya and Harvard International have officially laid out the middle and high-end market; in terms of cloud media, the "Jinya enjoy watching" wifi-TV video service has launched commercial operations in Chongzhou and other national intelligent cities, and the mobile Internet acceleration service based on triple play is also being rolled out in many places. It is expected to cover 100 million mobile terminals per day in 2015, creating more than 1 billion of new media value. In terms of the game industry, the 3D mobile game "Hot Blood College" produced by Chengdu Xuehu and the "Steam Mystery City" developed by Zhijia Video Tour are about to be launched, and the research and development of video games is advancing steadily; and after Sky Interactive enters the listed company, the research and transportation of mobile games will become a significant advantage project.
With the completion of the industrial layout of "content + platform + Terminal", the value driven by scarcity logic leaps: the company controls Minghe Minghe and Yinchuan Holy Land, successfully merging top competition resources such as WCA and GTV, and its huge potential copyright operation value and derivative commercial value are expected to be fully released. After Sky Interactive officially merges the table, the game industry-wide closed loop covering TV / mobile game research (content), e-sports event operation / event live broadcast (platform), game hardware (terminal), etc., will be completed, with significant scarce value in A shares. At present, WCA2015 is about to be launched, and advertising has been carried out in 5 periods of time in CCTV1 and CCTV4, which will accelerate the promotion of the company's market influence.
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, a significant increase in the margin of safety, and a further highlight of the driving investment value. It is expected that the 2015, 2016, 2016 and 2017 prep exam EPS will be 0.77,1.03,1.34 yuan respectively, which will be strongly recommended.