Operating data:
From January to June 2014, the company achieved operating income of 309 million yuan, an increase of 55.15% over the same period last year. The net profit belonging to shareholders of listed companies was 11.872 million yuan, compared with-81.9487 million yuan in the same period last year.
The increase in smart card sales, the increase in income from foreign power stations and the increase in equity investment income have jointly driven the company to turn losses into profits. 1) Tianyi integrated leading product A980 smart card and intelligent password key chip, on the basis of maintaining stable sales, realized the development of radio and television encryption emergency broadcasting system and small batch trial production in the first half of the year, and entered the pilot promotion stage in the second half of the year; A2000 chip was successfully applied to the encryption signature verification server and encryption machine project, and achieved mass sales; the company's dynamic token chip entered the market promotion stage and has won a number of users. The increase in smart card sales is the main reason for the 51.97% year-on-year increase in business revenue in the domestic region. 2) in the same period last year, the company classified the electricity charge income of European power stations into other businesses. after the current period was classified as the main business income, the gross profit margin of solar cell and power plant business increased by 24.55% compared with the same period last year, achieving an operating income of 178 million yuan, a year-on-year increase of 211.16%. Improve the company's profitability. 3) the investment income of Jiangsu High Investment Co., Ltd., a subsidiary, increased by 41.3041 million yuan compared with the same period last year, thickening the company's profit level.
The whole industry chain of lottery promotes the core competitiveness of the company in the field of mobile Internet. In the first half of 2014, in order to implement the industrial strategy of transformation and upgrading, the company carried out a series of investment and acquisition activities in the field of mobile Internet lottery. Acquire the controlling shares of Beijing Wonderland Lottery Technology Co., Ltd., Shanghai quantitative Lottery Information Technology Co., Ltd., Shanghai Haoxuan Information Technology Co., Ltd., Beijing Yingcai Changlian Network Technology Co., Ltd. After this acquisition, Variety shares have become the industry leader with the most complete layout of domestic lottery business and the most obvious advantages of backwardness, and provide an important customer traffic base and strategic partner for intensive cultivation of mobile Internet in the future.
The acquisition of online game companies lays the overall strategic foundation for the mobile Internet. On July 20, 2014, the company announced that it had invested 330 million to acquire 68.24% of the shares of Beijing Palm Feixun Technology Co., Ltd. After joining the target company, we will continue to focus on the research and development and operation of mobile online games, so as to achieve better, faster and greater development of the company's mobile game business. The acquisition of the online game company and the previous Internet lottery company will help the company to further actively build a platform for mobile Internet enterprises.
Risk hint. Market promotion is lower than expected and other risks.
Profit forecast and valuation. We estimate that the company's EPS from 2014 to 2016 will be 0.22 yuan / 0.41 yuan / 0.52 yuan respectively, corresponding to PE44/23/18 times, to maintain the "overweight" rating.