Summary:

2015 is the first year of the company's listing, and now the company has established the DT entertainment development strategy of "platform + content + data". Relying on the massive user video platforms of the existing Internet PC and mobile terminals, the company builds and improves the virtual reality platform-Storm Mirror (obtaining next-generation Internet users); Intelligent Home Entertainment hardware platform-Storm Super body TV (obtaining home entertainment users); and online interactive live broadcast platform-Storm Show (obtaining live broadcast users). The company said that on the basis of various platforms, the next step will be extended to the upstream film and television, games and other content industries, using big data to get through the platform to better serve users and enhance commercial realization. The company will use the Internet to drive the development of the entertainment industry, improve the Internet platform, take it as a new entrance, integrate resources, develop in many ways, and create a new entertainment ecology of the industry.

It is optimistic that the company will form a good supporting development model for the "DT entertainment" strategy from the three aspects of platform, content and data. It will effectively promote the company's all-round expansion, network entertainment multi-terminal access, enhance user cash channels, enhance user stickiness, and increase the company's business revenue.

The owner of Storm Technology has many loyal customers with high stickiness, relying on the "DT Entertainment platform", improving the layout of 4x3, vigorously developing VR and other emerging technologies, with perfect layout and obvious characteristics. The company has come to the explosive period of performance, and the products are gradually becoming mature. at the same time, the company has strong scientific research ability and great potential for later development.

Profit forecast: we forecast that the company's 2018 operating income will be 9.78,14.18 and 2.057 billion yuan respectively; net profit will be 2.12,3.46 and 584 million yuan respectively; EPS will be 0.77,1.25,2.11 yuan respectively; and dynamic P Phand E will be 83.4,51.2,30.3 times respectively. Be careful to give the company an "overweight" rating.

Risk tips: 1) the new business development is not as expected; 2) the competition in the industry is intensified.