Maintain the overweight rating with a target price of 104 yuan. Maintain the annual net profit forecast for 16-17-18, which is 0.73 shock 0.91 / 113 million yuan, respectively, and the EPS is 0.91max 1.12 plus 1.4 yuan respectively. Considering the rapid layout of the company's "multimedia video + cloud computing" business, the target price is 104 yuan, corresponding to 93 times PE in 17 years.
Business income maintained steady growth. In the first three quarters, revenue reached 521 million, an increase of 27.35% over the same period last year, and a net profit of 42.38 million, an increase of 5.31% over the same period last year. Q3 realized revenue of 176 million, an increase of 28.31% over the same period last year, net profit of 10.17 million, and an increase of 5.63% over the same period last year. The growth rate of net profit was lower than that of revenue, mainly due to the increase in the rate of management expenses and the increase in the amount of asset impairment losses.
The strategy of "Multimedia Video + Cloud Computing" has landed rapidly and has a strong driving force for long-term growth. The company announced the acquisition of NetRunjie in the first half of the year, which has great advantages in cloud computing and cloud services, helping the company to expand in multimedia video systems and cloud computing business; at the same time, it recently signed a strategic cooperation agreement with Shanghai Science and Technology Network, which is committed to IDC, cloud platform and big data business, and the two sides cooperate to build "cloud communication". The company's "multimedia video + cloud computing" business has landed rapidly and is expected to open up long-term growth space.
The establishment of subsidiaries will actively layout the Internet of things, and the industrial layout will be further improved. The company has set up a wholly-owned subsidiary, True Wutong Technology, with a registered capital of 10 million, which is committed to the development of the Internet of things business, in line with the company's long-term development strategy, while providing good network support for multimedia video, and further strengthening its leading position in the industry.
Risk hint: industry policy change risk; brain drain risk
