Events:
The company issued a forecast for 2016 results on January 17. The company's annual net profit for 2016 is expected to grow in a year-on-year growth range of 75%, 104.97%, and net profit range of 12.5421 million-14.69 million yuan. The company's net profit in 2015 was 7.1669 million yuan.
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Better-than-expected growth in full-year results: mainly due to the growth of revenue and gross profit from the company's software systems products and system integration, followed by the completion of the acquisition of Dianteng Interactive in December 2016, which merged some of the company's results in December. The performance commitments of Dianteng Interactive in 2016, 2017, 2018 and 2019 are 9 million yuan, 12 million yuan, 14.4 million yuan and 17.3 million yuan respectively.
The grand strategic layout with the TV screen as the core: in September, the company signed a framework agreement with Dianteng interaction, Youpengpule and Yijing Technology, which mainly focuses on the layout of the TV screen terminal, making use of the capital and operation advantages of Jiachuang Video, the content resources advantages of Youfriend, the video game advantages, and the VR content production advantages of Yijing. Integrate the advantageous resources of the industry, provide massive and high-quality content through special investment, and achieve a substantial increase in the ARPU value of the "big screen" terminal.
VR+ Radio and Television has become a new highlight: 1) in March, the company signed "VR+ Radio and Television" with four major national laboratories.
Related agreements and service contracts; 2) in April, we signed a VR operation cooperation agreement with Tianwei Video, Hubei Radio and Television, and Jilin TV Media to jointly carry out cooperation in the operation of the "VR+ radio and television" industry, mainly to promote the opening of virtual reality channels; and 3) to set up a VR subsidiary in Beijing in June, mainly for the shooting and production of VR content.
Acquisition and reinforcement industry: 1) in December, the company completed the acquisition of 100% equity in Shaanxi Dianteng Interactive, a video game product, game platform development and operator with a transaction value of 150 million yuan.
2) in September, the company transferred 4.718% of Beijing Youpengpu Le, with a transaction value of 100 million yuan. Youpengpu is a platform operator, content provider and technical solution service provider in the field of family interactive TV, with rich content resources.
The impact of run education is emerging: "run education" is a talent teaching "Taobao" platform, which brings together high-quality talent teaching resources to provide students with rich talent courses. The platform has been put into operation, and the preliminary expenses are relatively beginning to shrink. Mainly concentrated in Shenzhen area. With the expansion of resources and promotion, the future service area of the platform will be expanded. With the gradual maturity of the operation, the upfront expenses relatively began to shrink and began to generate revenue.
M & A fund anchor: in July, we set up a 1 billion yuan M & A fund with Qianhai Indus, mainly aimed at VR, cultural media, education and other fields.
Profit forecast and valuation
The company's traditional radio and television business is relatively stable, and the virtual reality card is more stable than before, especially the layout of "VR+ Radio and Television". It is expected to take the lead in opening virtual reality channels in the television field, coupled with the company's merger and acquisition of two TV operation service providers, gradually improving the layout of the industry. We use the wind consensus forecast that the company's net profit in 2016 will be 14 million yuan, 35 million yuan and 73 million yuan, covering the "overweight" rating for the first time.
Risk hint
A stock market systemic risk, new business development and promotion are not as expected.
