Main points of investment
Matters: the company released its 2016 China report on July 30.
Peace viewpoint:
Revenue increased steadily, and the net profit corresponding to the main business turned into profit: in the first half of 2016, the company realized operating income of 256 million yuan, an increase of 11.16% over the same period last year, and a net profit of 202 million yuan, an increase of 3818% over the same period last year. The main reason for the increase in the company's performance is the non-operating income recognized across the period of Lehui equity transfer and the turnround of the performance of the traditional peripheral business. The company's net profit after deducting non-return was 13.27 million yuan, an increase of 254% over the same period last year. The business of robots and drones is in the accumulation period of business development, with more investment in R & D and marketing, so the comprehensive cost rate of the company has increased.
The company decided not to increase or pay dividends in the middle of 16 years.
Focus on getting involved in the field of e-sports peripherals to create a V-series product line: by giving full play to the advantages of offline channels, formulating diversified marketing policies, and enhancing the brand recognition of products in the hearts of e-sports enthusiasts and high-end players, thus laying a solid foundation for continuously improving the market share of Internet cafes. During the reporting period, thanks to the smooth progress of the development of new customer groups, the obvious growth trend of competitive business, and the complete turnaround of peripheral business.
The new products jointly operated by the company and Tencent, empty Shadow YING and XPLOERMINI, are in the final product testing stage, and related products are expected to be listed in the second half of the year: since the launch of the company's drone business last year, XIRO generation drones have been sold on a large scale, and the products have been stationed in more than ten countries and regions at home and abroad. During the reporting period, through continuous innovation, the company subdivided the positioning of the company's UAV products, optimized and improved the product line, and strived to provide users with products with more people-friendly prices, easier to carry, easier operation and more social diversity in the future. to expand consumer groups and enhance brand market influence. By the end of the reporting period, the company and Tencent jointly built the new products, empty Shadow YING and XPLOERMINI, which are in the final product testing stage, and related products are expected to be available in the second half of the year.
Work with Zero degree and Tencent to capture the consumer drone market: according to TealGroup, a US aviation consulting firm, the consumer drone market will accelerate in the coming years. The market size was $2.8 billion in 2014 and will double to $5.6 billion by 2020. China, as a huge demand market for civilian drones, is expected to reach 11 billion yuan in 2018 and soar to 75 billion yuan in 2025.
Vigorously lay out the robot business, and have won orders: on the basis of the development of automation integration in the internal 3C field, the company set up a robot company, and began to design, plan and implement robot production lines for other 3C enterprises. that is, the integration project. At present, there are already orders of 90 million yuan, and new orders are expected to increase by 200 million yuan this year.
At the same time, the company continues to accelerate the production process of robot solution business, in order to seize the development opportunities of the industrial robot industry. In November 2015, the company prepared to raise funds in the form of a private offering of shares for the development and promotion of the company's robot and drone programs.
Among them, 340 million yuan is used for the industrialization project of robot integrated system equipment, which is committed to the procedures and actions of the product-oriented manipulator, which can adapt to the fine movements in various processes of 3C enterprises, and make it a customer of products sold to the industry.
Profit forecast: due to the special treatment of Lehui's equity interest for the new year, we raised the company's 16-year profit forecast from 157 million to 329 million, an increase of 109%, and kept the net profit forecast for 17-18 years unchanged. According to this forecast, the company's EPS from 2016 to 2018 is 1.16,0.78 and 1.07 yuan, respectively. The PE multiple of the company's share price is now 42.4 times in 16 years, 63.2 times in 17 years and 45.8 times in 18 years. We maintain the recommended rating.
Risk hint: the risk that the market expansion of the company's e-sports PC peripheral equipment is not as expected; the risk of intensified competition in the consumer UAV market.