Summary of the report:
The performance in the third quarter turned around, and the overall business situation improved. In the first three quarters, the company's main business is progressing smoothly, and the overall operating condition is improving. The company realized operating income of 173.047 million yuan, an increase of 20.73% over the same period last year, of which revenue in the third quarter was 115025362.88 yuan, an increase of 76.61% over the same period last year, and a net profit of 5594678.46 yuan, turning losses into profits in a single quarter. Increased input costs in the laser display and IDC business are a drag on profit growth. The subsequent promotion of laser and IDC business will greatly improve the company's profitability.
The laser display business is progressing smoothly and the performance is expected to break out. The company began to sell laser display film projectors and engineering machines on a large scale, and achieved nearly 20 million of sales by the end of the reporting period. at the same time, the company has completed the research and development of 6000 lumen single DLP integrated machine and 12000 lumen 3DLP integrated prototype by the end of the year. The series of laser display products is more perfect, and the company's laser technology is expected to maintain a leading global market position in the home, engineering, performing arts and cinema markets in the future. The continuous expansion of laser products provides strong support for the company's performance.
The layout of IDC business is gradually improved, and the advantage of network + resources strengthens the position of the industry. The company's IDC business occupies two major advantages of network and resources. The self-built independent controllable backbone network and the nationwide optical fiber path rental agreement signed with Chengyi era enable the company to have the advantage of network resources covering the whole country. At the same time, the company's IDC computer room enjoys significant advantages in electricity resources and potential scale advantages of IDC in Ordos. The company will provide cost-effective IDC services in the industry. During the reporting period, the company signed a 245 million BT contract with Ordos for the construction of computer rooms, and it is expected that IDC business will achieve remarkable results next year. At the same time, the national network resources have also laid the foundation and development prospects for the company's future business extension and expansion in the field of cloud computing big data.
Give a "buy" rating! It is optimistic about the exclusive technical advantages of the company's laser display business, and the continuous volume of products provides support for performance growth. The advantage of network + resources helps the company to become the leader of IDC industry. The company is expected to have a "buy" rating of 0.10 EPS for 2015 to 2017, which is 0.49 to 0.97 yuan respectively.
Risk hint. Laser display business expansion is not as expected, IDC business expansion is not as expected.