Main points of investment:
Invest in American Meta, layout wearable AR smart devices. GQY Video paid US $10 million to buy 178600 shares of the additional round B preferred shares issued by the underlying company. After the capital increase is completed, GQY will hold 178600 preferred shares of the underlying company, accounting for 3.62% of the shares of the underlying company on a fully diluted basis. Through this investment in Meta, the company will participate in the development, application, production and manufacturing of the world's leading augmented reality products, providing favorable conditions for GQY to occupy the commanding heights in the augmented reality ecosystem.
GQY is a perfect match with Meta, and AR technology is integrated with large screen integrated display technology to further enhance the advantages of display applications. The integration of American Meta's AR technology and GQY's large-screen integrated display technology will form a display application with distinctive characteristics, and its advantages will be highlighted. On the one hand, this will add technical features to the original large screen display products of GQY video, and on the other hand, it can also provide support for the new application market and field of GQY layout. In addition, the two sides will also carry out rich forms of cooperation in the Chinese market, which is in line with GQY's corporate strategy of strengthening the professional video industry, and will be a perfect match for the creation of GQY professional video industry, a win-win industrial investment cooperation, and further consolidate the company's strategic deployment in strengthening the professional video industry, in line with the company's long-term development plan.
With Jibo of the United States, the robot software platform is equipped with artificial intelligence, and the two sides will complement each other. GQY Video acquired 3.1703 million shares of the first round of preferred shares issued by Amure for $1.4 million. Upon completion of the capital increase, GQY will hold 3.1703 million preferred shares of the underlying company, accounting for 1.1 per cent of the underlying company on a fully diluted basis. GQY in the robot field, in the intelligent robot drive structure, low-voltage servo drive, inertial sensor technology, multi-axis robot motion planning and control, robot navigation and positioning and other core technologies of the robot industry, and a strong marketing planning team. Jibo's global leadership in robot artificial intelligence and software platform, combined with the advantages of GQY robot hardware and marketing planning in China, will further enhance the core competitiveness.
Profit forecast. The company has set foot in the field of intelligent application on the basis of professional video main business, the future development strategy is clear, the layout of intelligent robot and AR business is developing steadily, and the extension expectation is strong. In addition, on January 6, 2016, the chairman of the company, Mr. Guo Qiyin, promised that the growth rate of the company's net profit belonging to the shareholders of the parent company in 2016 would not be less than 53.34% based on 2014. that is, the company will achieve a net profit of no less than 30 million yuan for shareholders of listed companies in 2016. We estimate that the EPS of the company from 2016 to 2018 will be 0.08,0.14,0.24 yuan respectively. Considering the same industry companies such as ST Zhongfa, Haiyuan Machinery, Optical Technology and AR, which are also intelligent robot concepts, the PE in 2017 will be 40240 times, we will give the company 130x PE in 2017, corresponding to the target price of 18.20 yuan. At the same time, with reference to our forecast of the company's compound growth rate of 188% in the next three years, it is concluded that the PEG is 1.2, which confirms that the target price is more reasonable and gives a buy rating.
Risk hint. Main business profit decline risk; intelligent robot, AR business development is not as expected risk.
