The third quarter profit is expected to be the inflection point for the whole year of 2015. In the first three quarters of 2015, the company achieved operating income of 173 million yuan, an increase of 20.73% over the same period last year, and the net profit attributed to shareholders of listed companies was-16.35 million yuan, down 947% from the same period last year. The company realized a net profit of 5.59 million yuan belonging to the owner of the parent company in the third quarter, which began to improve compared with the previous two loss quarters. The company is expected to achieve a full-year turning point by virtue of smart city and laser display business growth in 2015.
Laser display began to increase the volume, A-share scarcity target. During the reporting period, the company began to sell laser display film projectors and engineering machines on a large scale, with a total sales volume of nearly 20 million. At the same time, it has completed the research and development of 6000 lumen single DLP integrated machine and 12000 lumen 3DLP integrated machine prototype, and the company's future laser display product market is expected to be in full swing. The company is expected to sell 100 units in 2015, with revenue of 50 million yuan at an average price of 500,000 yuan per unit, and 250 million yuan in 2016.
It is expected that the IDC business will achieve phased results next year, and it is expected to tap the value of big data in the future. The company's IDC business combines the advantages of low cost of electricity, low cost of policy and low cost of optical fiber rental. The company's IDC data center is located in Ordos, where the regional electricity price can be as low as 0.20 yuan / kWh, while the electricity price in Shanghai and other cities can reach 0.8 yuan / kWh. Dewey Video and Chengyi Times signed an exclusive agreement for the use of the backbone network. It is expected that Dewey Video will rent the network to reduce the average monthly traffic fee to 22,000 yuan / G, while the industry average fee is about 100,000 yuan / G. In the future, the company is expected to use IDC-based data to target the SaaS level of big data mining and operating business. It is estimated that the company will have 8000 cabinets in 2016, with revenue of 624 million, accounting for 40.67% of the main business, with a gross profit of 250 million.
Maintain earnings forecast and reiterate "buy" rating. It is estimated that the annual income of the company from 2015 to 2017 is 6.5,15.34 and 2.084 billion yuan, the net profit is 0.28,2.48 and 365 million yuan, and the earnings per share is 0.09,0.83,1.22 yuan. The current stock price corresponds to the PE of 225x, 24x, 17x in 2015-2017, and the company turns losses into profits by relying on smart city business in 2015. due to the greater flexibility of laser display and IDC business performance in 2016 and 2017, it is expected to further tap the value of IDC data in the future, giving the company a market capitalization target of 10 billion in the next six months.