Introduction to this report:
The company released its semi-annual report, achieving a cumulative net profit of 29.66 million in the first half of 2017, a year-on-year decrease of 7.91%, slightly lower than previous expectations.
Key points of investment:
Maintain the increase rating and lower the target price to 31.5 yuan. Considering that the growth rate of the company's revenue and net profit fell short of expectations, the net profit forecast for 17/18/19 was lowered to 0.73 (-0.18) /0.85 (-0.28) /96 million yuan. The corresponding EPS was 0.45/0.52/0.59 yuan respectively, and the target price was 31.5 (-20.07) yuan, corresponding to 70 times PE in 17 years.
Revenue rose slightly, net profit declined slightly, and cloud video technology research and development dragged down short-term performance. The company achieved revenue of 374 million yuan in the first half of the year, an increase of 8.37% over the previous year, and the net profit of the mother was 29.66 million yuan, down 7.91% from the previous year. The performance was slightly lower than our previous expectations. The decline in net profit was mainly due to the company's active technical research on cloud video, the year-on-year increase in R&D expenses of 54.83%, and the completion of the company's office building and the transfer of fixed assets to the beginning of depreciation.
Continue to focus on the business strategies of the Three Clouds, 3+, and Three platforms, and actively carry out research on key cloud video technologies. During the operating period, the company obtained 8 computer software copyrights, including True Vision's multimedia centralized display and interaction system V1.0 and the cloud video business management platform V1.0, and was officially approved as the “Beijing Engineering Laboratory for Cloud Video System Key Technologies”. Technological breakthroughs will further enhance the company's competitive advantage in the multimedia video industry.
Lay out military and civilian integration and expand education and training services. In the first half of the year, the company actively implemented the key project “Cloud simulation method based on lightweight virtualization architecture” of the Military Commission's Equipment Development Department, and set up a subsidiary in Changsha to implement the civil-military integration business. At the same time, the company set up an education and training division to open up new markets. In the future, it is expected to form synergies with the company's main business and provide new growth impetus for the company.
Risk warning: The progress of technology research and development falls short of expected risks, and the risk of new business advancing slowly
