Revenue / profit reached a record high in 16 years, and business recovered in an all-round way. On February 24, the company disclosed its performance, KuaiBao. In 2016, the company achieved operating income of 390 million, an increase of 103% over the same period last year. Its net profit was 78.24 million, an increase of nearly 510% over the same period last year. Both the company's income and net profit reached record highs. In the context of deepening business upgrading and institutional optimization, the company's revenue has increased significantly, and the profit level has also increased significantly.
Accelerate the transformation of mobile Internet integrated operators, business coruscate a new pattern. Taking advantage of its own channel advantages for many years, on the one hand, the company continues to increase its investment in mobile Internet-related services (mobile game agents, traffic management, etc.), and adopts this endogenous way of development to transform into a comprehensive mobile Internet company. At the same time, the company uses its own rich industrial resources to establish industrial bases and industrial investment funds with incubator characteristics, through the industrial ecological extension layout, focusing on integrating the resources of various links of the Internet industrial chain and giving full play to the synergy effect. in order to achieve great-leap-forward development.
Focus on channel advantages, deep ploughing flow management and other business, the future performance will be accelerated. The company has reached in-depth cooperation with EA, Rivio, King and other manufacturers to create high-quality IP boutique game agency channels; based on historical development, promotion channels include Weibo Corp, Wechat, 91, UC, XIAOMI, Hangzhou Zhangmeng Technology (22.31% stake) and three major operators, and the performance is expected to continue to grow steadily. The traffic management is advancing steadily, and the virtual operators are the first to make a profit; the Internet lottery business layout is early and continuous, waiting for the policy spring.
The advantages of industrial resources represented by the mobile Internet industrial base are becoming more and more obvious, promoting the vitality of long-term development. The company's Nanjing Mobile Internet Industrial Base is located in the core area and has the characteristics of incubator. After the completion of the 113,000,000 flat office building, the minimum contribution annual profit is expected to be no less than 51 million, and the lowest reasonable market valuation is between 1.55 billion yuan and 2.80 billion yuan, together with other physical assets of the company. At the same time, we will take the lead in setting up a 500 million industrial M & A fund and completing a new phase of restricted equity incentives at the beginning of 2017 to boost long-term development vitality.
Cover for the first time, giving a "buy" rating. We estimate that the operating income of Northlatitude Telecom in 17-18 years is 588 million and 829 million respectively, and the net profit of returning home is 158 million and 223 million respectively. At present, based on foreign mobile game agents and the operation of Nanjing Mobile Internet Industry Base, the company's performance scale and growth foundation have been consolidated; at the same time, with the opening of flow operation business, the liberalization of relevant industry policies and the extension of industrial M & A funds, the company's performance scale is expected to accelerate. The recent increase in the holdings of major shareholders also demonstrates the management's firm confidence in the long-term development of the future. The PE given to 2017 and 2018 is 50 times and 36 times respectively, corresponding to the target price of 31 yuan. Cover for the first time, giving a "buy" rating.
Risk hints: industrial park profits are not up to expectations, emerging business industrial policies are lower than expected, and systematic valuation fluctuations.