Main points of investment:
1. Event
1. The company released its quarterly report for 2016, with revenue of 53.3979 million yuan in 2015, an increase of 37.77% over the same period last year, and net profit of-485400 yuan, an increase of 69.14% over the same period last year.
2. In the announcement of the quarterly report, the company issued the strategic plan of the company's augmented reality industry.
3. On April 17, 2016, the company's board of directors received a letter from Yao International, a shareholder with 6.22% of the shares, on the interim proposal for the capital reserve fund to increase equity for 2015, which is based on the total share capital of 212 million shares at the end of 2015. increase 10 shares to all shareholders in the form of capital accumulation fund. The chairman, Mr. Guo Qiyin, expressed his support for the proposal.
2. Our analysis and judgment
(1) the performance in the first quarter improved, and the chairman promised a substantial increase in the first quarter of 2016. In the first quarter of 2016, the company realized operating income of 53.398 million yuan, an increase of 37.77% over the same period last year. The net profit attributed to shareholders of listed companies was-485400 yuan, an increase of 69.14% over the previous year's net profit of-1.5731 million yuan. The company's operating results improved in the first quarter of 2016 compared with the same period last year, mainly due to the increase in the number of orders for professional video products and the increase in large screen sales revenue compared with the same period last year.
The board of directors of the company received a notice from Mr. Guo Qiyin, the actual controller, chairman and general manager of the company on January 6, 2016. Mr. Guo Qiyin promised that "on the basis of 2014, the growth rate of the company's net profit belonging to the shareholders of the parent company in 2016 will not be less than 53.34%, that is, the company will achieve no less than 30 million yuan of net profit belonging to the shareholders of the listed company in 2016." If the net profit of the company belonging to the shareholders of the listed company in 2016 is less than 30 million yuan, I will make up the performance difference to the listed company in cash. "
At the same time, the company's 2015 annual report revealed that the 2016 budget operating income was 342.52 million yuan, an increase of 68% over the same period last year, the budget consolidated operating profit was 37.82 million yuan, and the budget belonged to the parent company's net profit was 30.8 million, an increase of 529% over the same period last year. We believe that the actual controller of the company has sufficient confidence in the future of the company and does not rule out the possibility that the performance will exceed expectations.
(2) the service robot strategy is progressing smoothly, and opening the growth space company's service robot products is expected to accelerate the landing: (1) the production process of the vehicle self-balanced rescue platform is progressing smoothly and has entered the debugging stage. The first edition plans to achieve small batch trial sale in 2016. (2) the research and development of bank service robot and hotel service robot has entered the technical verification stage, and the first prototype is scheduled to be officially released in the third quarter, which has formed a relatively complete technology development, manufacturing and marketing strategy. (3) the development of IMU inertial measurement unit, EtherCAT serial communication gateway and 1000W low voltage servo controller for mobile robot was completed in 2015. (4) the company continues to select suitable M & A targets for the robot industry, and is currently entering the stage of investigation and demonstration. The company will integrate the robot industry through a series of mergers and acquisitions to improve the layout of the service robot industry. We judge that the company's service robot business will open up new room for growth.
(3) invest in Meta in the United States, cut into AR; to build an internationally competitive AR ecosystem Meta is a high-tech company focused on research and development, focusing on wearable augmented reality (Augmented Reality) smart devices and ecosystems, providing support platforms for AR smart glasses, SDK development tools, and complete software and hardware for AR applications. According to the company announcement, Meta currently has the most advanced augmented reality technology and products in the world. Steve Mann, chief scientist of the Meta team, is known as the "father of wearable computing", whose research results on wearable computing are 30 years earlier than Alphabet Inc-CL C; lead consultant Steve Feiner is known as the "father of augmented reality".
As one of the top three AR opticians (the other two are Magic Leap and Microsoft Corp's HoloLens), Meta glasses can build holograms and allow users to use their fingers for real augmented reality applications. Magic Leap has not yet demonstrated the Demo of the product, while the product of Meta has iterated to META1--METApro--META2, and its new product has shown the market how AR technology enables people to interact with digital information in the real world.
AR technology can fuse and display different data, and can be combined with e-commerce, commodity advertising and O2O; AR hardware is a tool, an alternative to mobile phones, and a wide range of applications. It is estimated that the AR market revenue in 2020 is expected to reach 120 billion US dollars, which will be higher than the VR market revenue of 30 billion US dollars.
(IV) GQY Video AR Industry Strategic Planning and phased objectives GQY Video invests in Meta to join the AR ecosystem, committed to building an internationally competitive augmented reality industrial chain and application ecology, mastering core technologies in the field of augmented reality, participating in augmented reality domestic / international standard-setting, and promoting the development of China's augmented reality industry.
GQY Video will participate in the ecological construction of augmented reality industry, promote the development of key hardware, algorithm technologies and content platforms, and establish application templates and standards for related industries based on augmented reality industry applications and relying on the company's channel resources and industry understanding in some industries.
The phased goals of GQY video AR industry are:
(1) in 2016-2017, in cooperation with top scientific research institutions at home and abroad, the AR Technology Cooperation R & D Center was established to further consolidate the world's leading foundation of augmented reality core technologies, realize the layout of core algorithms and key technologies of augmented reality, and set up AR+ Robot M & A Fund and AR Incubator. Set up a potential AR application company for 1-2 furniture. Based on the distributed visual display technology, combined with big data and visualization technology, the traditional large screen display products are transformed from 2D to 4D, and the application of AR in interactive social urban planning and exhibition is realized. Combined with GQY intelligent single police anti-terrorism equipment, the application of urban emergency command and counter-terrorism prevention and control is realized.
(2) incubate 2-3 potential furniture AR application companies in 2-3 industry application directions from 2018 to 2019, and establish the industry voice in related fields. Implement applications in intelligent transportation, education, ocean, energy, telemedicine, etc., implement augmented reality developer platform construction in professional fields, including developer portal, creator center, R & D exhibition center, to comprehensively promote AR industry application, GQY intelligent service robot integrates AR to enhance high-end technical services.
(5) significant progress has been made in the business of personal / home service robots with investment in Jibo. In 2015, the company invested US $1.4 million in Jibo, the world's first intelligent social service robot research and production company, accounting for 1.07% of its completely diluted equity, thus realizing a positive exploration in the field of personal / home service robots. It also further strengthens the company's strategic deployment of technology integration on intelligent service robots.
Jibo is the world's leading R & D and manufacturer of intelligent household robots, with a core team from the Media Lab of the Massachusetts Institute of Technology. Cynthia Breazeal, founder and chief scientist of Jibo, is recognized as a pioneer of social robots, and his work is also regarded as a groundbreaking achievement in the field of social robots. According to the company announcement, Jibo Robot is the world's first social robot with artificial intelligence and has entered the stage of mass production preparation, while Jibo Robot's SDK is an open software development platform that can be developed and used by robot enthusiasts around the world.
According to the announcement, Jibo expects to sell 58083 Jibo robots in 2016, generating revenue of US $46 million and a profit of US $13.5 million. Sales are expected to reach 249771 units in 2017, with operating revenue of US $216.31 million and profits of US $91.69 million. Jibo company's growth and profitability are extremely outstanding.
Through this investment, the company will participate in the research, development, production and manufacturing of the world's leading intelligent social robot products, which will further consolidate the company's strategic deployment in intelligent service robots. The company has advantages in robot hardware and marketing planning in the Chinese market. Combined with the advantages of Jibo's artificial intelligence and software platform, the two sides will carry out rich forms of cooperation in the Chinese market. We judge that this investment is only the beginning, and the company will have further cooperation with Jibo in the future. At the same time, at present, the company has more than 600 million yuan in cash, and we think that the company will not rule out the possibility of adding more intelligent robot business through epitaxial mergers and acquisitions in the future.
(6) to set up investment subsidiaries to speed up industrial integration in areas such as intelligent service robots. In 2015, the company set up an investment subsidiary Shanghai Tianzhi Investment Co., Ltd. in the Shanghai Free Trade Zone with a registered capital of 20 million yuan (which has been increased to 60 million yuan). As an important industrial investment platform at home and abroad, with the goal of absorbing high-quality resources in the upstream and downstream of the company's industry, grasp the trend of industrial investment. Help GQY Video to give full play to the economies of scale of enterprises, make the company's industrial operation and capital management form a positive interaction, and provide all-round support for the future industrial integration of the company.
Shanghai Tianzhi's business scope includes: research and development, production and sales of robots and automation equipment; robotics technology, technology transfer and technical services.
(7) shareholders holding more than 5% of shares: promise that the share price will not be reduced by less than 50 yuan before July 16, 2015. On July 16, 2015, the company received a letter from Mr. Yao International, the shareholder of the company, who holds more than 5% of the shares of the company. Based on full confidence in the company's development strategy of transforming into a leading international intelligent robot company, Yao International continued to increase its holdings of 2.57 million shares from June 29, June 30, July 1 and July 15, 2015. and continue to increase holdings in the future according to market conditions.
Yao International promised not to reduce its shares in the company in the next six months from July 16, 2015; if the stock price of the company does not reach 50 yuan in the next 6-12 months, it will not reduce its shares; in the next 12-24 months, if the stock price of the company does not reach 80 yuan, it will not reduce its shares.
As of September 30, 2015, Mr. Yao International held 2.57 million shares of the company through the general securities account, accounting for 1.21% of the total share capital of the company; 10618888 shares of the company through the customer credit transaction guarantee securities account of China Galaxy Securities Co., Ltd., accounting for 5.01% of the total share capital of the company; a total of 1318888 shares of the company, accounting for 6.22% of the total share capital of the company.
According to the company announcement: Yao International is optimistic about the future development prospects of the company and the growth space of the intelligent robot industry. Between April 7, 2015 and May 21, 2015, through the customer credit transaction guarantee securities account of China Galaxy Securities Co., Ltd., the company's shares were increased by centralized trading, accounting for 5.01% of the total shares. the details are as follows: 7488800 shares were purchased between April 7 and April 30, 2015. The price range of increasing holdings is from 17.99 yuan to 21.06 yuan. 3130088 shares were bought between May 4 and May 21, 2015, and the price range is from 18.01 yuan to 26.16 yuan.
We are concerned that Vcanbio Cell genetic Engineering Co., Ltd. (600645) became the fourth largest tradable shareholder of GQY Video in GQY Video's mid-2015 report, holding 2.08 million shares, accounting for 0.98% of the total share capital.
We are also concerned that the listed company Vcanbio (600645) received a voluntary gift of RMB 1 million from Mr. Yao International to the company on May 5, 2015, specifically for the company's R & D expenditure in the field of new generation CAR-T immune cell therapy technology. Vcanbio (600645) 2014 Annual report shows that at the end of 2014, Yao International held 5.07 million shares of Vcanbio, accounting for 1.44%, making it the fourth largest tradable shareholder of Vcanbio and the only individual investor among the top 10 tradable shareholders, with a market capitalization of about 200 million yuan.
3. Investment advice
The company is committed to building a leading enterprise with an annual output of 10 billion intelligent robots, focusing on special robots, service robots and medical robots. The company has a market capitalization of 4.7 billion yuan and has more than 400 million yuan in cash. It is expected that in the future, the company will continue to add intelligent robot and AR business through endogenesis and epitaxy. We are optimistic about the development prospect of intelligent robot + AR industry and maintain the company's "cautious recommendation" rating.
