Main points of investment:
Aiming at the industrial opportunities in the next decade, we will speed up the industrial layout of service robot + AR, and actively promote the transformation from traditional video to intelligent industry. On January 7, 2016, GQY Video announced the purchase of 178633 shares in Series B preferred shares issued by MetaCompany for $10 million. Accounts for 3.617% of Meta's equity on a fully diluted basis. On November 23, 2015, it plans to buy Jibo,Inc of the United States for $1.4 million. The additional 3170289 preferred shares issued. When the capital increase is completed, it will account for 1.1 per cent of Jibo's equity on a fully diluted basis.
Augmented reality has a wider application prospect, and GQY timely intervenes to seize the technical high point. According to the research institute's forecast, the VR/AR market will reach 150 billion US dollars. Compared with the current market focus on virtual reality (VR), augmented reality combines virtual and reality with a wider range of application scenarios, which is also the direction in which international science and technology giants such as Google (Magic Leap) and Microsoft Corp (Hololens) have invested heavily in development. QGY timely intervened in the AR field by investing in the world's top Meta company to seize the technical high point. According to our communication with Meta, Meta has developed a more mature application model in education, medical and other fields, and the future prospect is quite considerable. The robot market is booming, and the service robot is in the ascendant. GQY takes advantage of the opportunity to speed up the development. From 2009 to 2014, during the period of rapid development of robots in the world, especially in the context of the global financial crisis, robots grew against the trend, with a global growth rate of nearly 30 per cent. China became the world's largest market for robots in 2013 and grew by 54% in 2014. Compared with the industrial robots which are widely used at present, the service robot market is just beginning to rise. Service robots in education, entertainment, emotional escort, security and other fields are ushering in the rapid development. Jibo, as a service robot concerned by the global technology industry, will be launched in 2016. Investment in Jibo will effectively make use of its global influence to serve the robot field in advance. At the same time, we judge that the technology in the field of balancing cars and robots accumulated by the company over the years will collide with more sparks with Jibo products, which will effectively promote the landing of the company's service robot strategy.
Service robots and AR products will become the core platform for home and personal hardware consumption in the era of the Internet of things. The scope of hardware in the era of the Internet of things will be greatly expanded, and intelligent products will form a widely interconnected hardware network around families and individuals. We believe that in the massive hardware in the future, the service robot will become the center of home intelligent hardware, and AR products will become the core of personal intelligent hardware.
For the first time, the overweight rating was given. According to the development trend of the company's existing large screen splicing business and balancing car business, we estimate that the company's EPS in 2015-17 will be 0.03,0.14,0.33 yuan. Considering the development potential of the company's innovative business such as mobile policing platform and self-balanced rescue platform, and the business layout of Meta, Jibo, New Century Robot, we judge that the market capitalization of the first step of the company is 5 billion yuan, corresponding to the target price of 23.58 yuan.
Risk hint: the service robot and VR/AR industry is in its infancy, and problems such as high technical requirements, large capital investment and long return cycle add uncertainty to the future development.
