Rely on the traditional business advantages, a clear strategic layout. In the first three quarters of 16 years, the company's operating income was 897 million, an increase of 157.22% over the same period last year, and its net profit was 19.35 million, down 18.94% from the same period last year. Relying on the massive user video platforms of Internet PC and mobile, the company has gradually built and improved the virtual reality platform, intelligent home entertainment hardware platform and online interactive live broadcast platform, and established the DT entertainment strategy of "platform + content + data".
Improve the layout of the platform and further expand the scale of users. 1) the company continues to make technical improvements in Internet video business, and through VR technology, some videos have panoramic playback function, and users can switch angles to watch videos at will, greatly improving user experience and enhancing user stickiness. 2) Storm Super body TV takes "hardware + software + content" as the core, constantly pushing through the old and bringing forth the new. Through the X series VR TV jointly built with Storm Mirror, VR technology has been successfully applied to TV, which has greatly enriched the product models of Internet TV, successfully achieved full coverage of all grades of high, middle and low products, and met the needs of people at all levels of consumption. 3) Storm Mirror takes the mobile VR industry ecology of "hardware + content + channel" as the core, and actively arranges the virtual reality industry. Storm Mirror has more than 1.475 million monthly active users, ranking first in China's virtual reality industry, according to iResearch Consulting IuserTracker. 4) to participate in Storm Sports, based on the communication channels and event copyright, take virtual reality technology as the entry point, and quickly seize the market.
The layout of the content is advancing steadily. Through the establishment of Storm Film Industry, the company will further consolidate the content foundation of the company's "DT Entertainment" strategy and enhance the content support of the company's existing business platforms. Storm Super body TV has now launched six modules: film and television, music, children, content e-commerce, sports, and games. It not only relies on the massive resources accumulated by Storm Player over the years, but also shares its VR panoramic video with Storm Mirror, and obtains resources from content providers such as iQIYI, Inc. and Aofei animation. In addition, after the establishment of Storm Sports, it focuses on the content of sports. Combined with the relevant advantages of Storm Mirror in the VR industry, integrate VR filming and live broadcast in various events, carry out in-depth processing of sports events, improve the ability to provide sports content, and build the Internet into an innovative channel between sports enthusiasts and sports events.
Strengthen the construction of big data system and enhance the synergy efficiency of various businesses. The company's big data platform has gone deep into various business modules. Through the collection, analysis and summary of the data of each platform, the accurate portrait of the users of each platform is realized; by customizing personalized content for users, the business sectors of the company are more closely linked, and the overall operation efficiency and cash realization ability are also effectively improved, forming a synergy benefit of 1: 1 greater than 2.
Profit forecast and valuation. We estimate that the company's net profit from 2016 to 2017 will be 138 million yuan and 193 million yuan respectively, and the corresponding EPS will be 0.5 yuan and 0.70 yuan respectively. Optimistic about the company's "platform + content + data" DT entertainment strategic layout, we think the company can still enjoy a certain premium valuation, giving the company 127x PE in 16 years, corresponding to the target price of 63.50 yuan, buy rating.
Risk hint. Business integration risk.