Main points of investment:
Annual report results are in line with expectations
The company recently released the 2016 annual report and the first quarter 2017 results forecast: the company's operating income in 16 years was 232 million yuan, an increase of 59.01% over the same period last year, and the net profit belonging to shareholders of listed companies was 13.6446 million yuan, an increase of 90.38% over the same period last year. It also paid a cash dividend of 0.20 yuan to all shareholders for every 10 shares, in line with expectations. The estimated loss in the first quarter of 17 was 809.22-9.9597 million yuan, down 30% from the same period last year.
The existing main business is growing steadily, and VR and other emerging industries are actively cultivated.
The company is an end-to-end overall solution provider in the radio and television industry, mainly engaged in digital TV system research and development, digital TV system integration services, digital TV terminal products, mobile Internet content services and game product development. The company's products are OTT business cloud platform, MMSP system, DBOSS system, Portal management platform, TVOS system, run education platform, video game platform and so on. At present, the company is actively carrying out the research and development of virtual reality technology, online education platform, big data analysis technology, intelligent terminal software, multi-screen interactive system, cloud games and cloud distribution technology solutions.
Of the current main revenue of 232 million yuan, the revenue of software system products was 58.33 million yuan, an increase of 26.46% over the same period last year, and the gross profit was 45.91 million yuan, up 18.22% over the same period last year. The revenue of system integration products was 136 million yuan, up 46.18% over the previous year, and the gross profit was 30.82 million yuan, up 53.64% over the previous year. This year, the company's new profit growth point is the terminal products operated in cooperation with Henan Network, with revenue of 20.13 million yuan. At the same time, because the wholly-owned subsidiary Yijing Technology Company and fingertip City Company are still in the stage of large-scale investment, the operation and management expenses have increased a lot, resulting in negative operating profit, but the company still has a good growth in return net profit in 16 years.
Based on the field of radio and television, build industrial ecological chain
Based on radio and television technology, the company actively opens up technical channels from content integration, platform broadcast and control, content distribution to data transmission, and gradually constructs the company's industrial layout in radio and television through a series of foreign investments. realize the synergy with the main business and build a big ecological chain of the radio and television industry. In the past 16 years, the company has used its own capital of RMB 100 million to set up Beijing Yijing Technology Co., Ltd., which is mainly engaged in the shooting of virtual reality industry (VR) content, and through cooperation with professional organizations, speed up the development and application of VR video content editing, transformation, transmission and other technologies. At present, it has completed a certain number of hours of VR video and panoramic video content, which has laid a good foundation for the company's "virtual reality + radio and television" technology application and industrialization work. At the same time, the company also invested 150 million yuan to acquire Shaanxi Dianteng Interactive Network Technology Co., Ltd., cutting into the video game products, game platform development and operation business of IPTV set-top box, intelligent set-top box, Internet intelligent TV and other terminals. In addition, the company uses its own funds to increase its investment in Shenzhen fingertip City Network Technology Co., Ltd. Fingertip City Company takes "run" education and other projects as its core business, accumulates certain user resources, and has a certain influence in the industry and Shenzhen market. In the follow-up, big data marketing based on accurate youth talent learning (such as the sale of merchandise around talent, etc.), and Internet services related to talent examination will be carried out jointly with competent units in charge of talent examination. and the construction project of an experimental area for artistic quality evaluation of primary and secondary school students, which aims to build an ecological system of talent teaching services. In short, through the integration of technology, content, talent and market, the company continues to improve the ability of platform construction and operation, and actively carries out more in-depth cooperation with radio and television operators to further promote the development of the industry. this will also bring good performance growth for the company.
Profit forecast
Considering that the company's VR and other business development period is coming to an end, the future performance is expected to enter a high-speed growth cycle. It is estimated that the company's revenue in 2017-2019 will reach 2.67,3.20 and 426 million yuan, with corresponding EPS of 0.04,0.06 and 0.08 yuan, which will be covered for the first time and given a "overweight" rating.
Risk factors: the progress of VR application promotion is not as expected; the performance of the acquired enterprises is not as expected.
