The company is the first echelon of domestic CG visual effects industry, mainly serving real estate development companies, urban planning, design companies, architectural design and research institutes, landscape design companies, medical devices, automobile industry and so on.
CG products can visualize abstract products, with intuitive, customer-friendly and other characteristics, as soon as it was born to stimulate the huge demand of various industries. At present, China's CG industry is mainly for real estate, architecture, industrial design, advertising and other industries, film and television animation and other creative industries are also in rapid development.
Based on technological advantages, customers continue to diversify.
With the continuous diversification of customers, the industries of the company's customers are mainly architectural design and real estate; with the continuous expansion of downstream application fields, the number of government, industrial / advertising companies, film and television entertainment customers continues to increase, and the composition of business income continues to diversify. The company's share of revenue in the real estate and construction industries has fallen from 70% in 2013 to 43% in 2016H.
The company is a typical light asset enterprise. The company's competitive advantages are: 1) high-quality, younger, stable talent team advantage. 2) the advantages of scale and wide service areas make the company's service types richer, and the customer resources, cases and technical reserves accumulated in different industries are more profound. 3) technological advantages, including the creation technology of digital image and digital audio and video, as well as the integrated technology of visual scene, such as multi-touch and wireless control, multimedia digital sand table, holographic imaging, virtual reality and so on. 4) rich customer resources. The company serves CNOOC, China Merchants Shekou, National Museum of China, Ubisoft Software, New World Group, Huaxia Happiness Foundation, Huasan Communications and other well-known enterprises.
The market reshuffle is imminent. At present, there are tens of thousands of CG industry participants, the industry is in a small and scattered pattern, the industry leader Silk Road Vision, Crystal, Guangzhou Fantuo and other revenue is only a few hundred million levels. We believe that with the upgrading of the demand of downstream customers and the improvement of the competitive environment in the industry, the CG industry will usher in a reshuffle and the market share will accelerate to the leading enterprises.
Profit forecast and valuation
We predict that the company will achieve operating income of 530 million yuan and 670 million yuan and net profit of 40 million yuan and 50 million yuan in 17 and 18 years.
Revenue growth is about 20-30%. Benefiting from the rapid development of the CG market, as well as the company's unique advantages such as an excellent talent team and a sound marketing and service system, we expect the company's future revenue to maintain a growth rate of about 20-30%. Among them, the proportion of CG dynamic vision service and CG visual scene integrated service will increase steadily.
The company's comprehensive profit margin remains stable. In 14 and 15 years, under the influence of the policy of "revenue reform and increase", as well as factors such as the expansion of the company's scale and the increase in labor costs, the profit margin has declined; recently, through the improvement of internal management, labor costs and capacity utilization have been continuously optimized. we think the company can keep its profit margin stable.
We are optimistic about the development of CG business in China, as well as the company's status as a leading domestic CG company. We should pay attention to it as a long-term growth variety.
Risk tip: a correction in the real estate and construction markets could lead to a slowdown in corporate growth.