Event: the company announced that the company achieved revenue of 3.03 billion yuan in 2017, an increase of 92.9% over the same period last year, and a net profit of 209 million yuan, an increase of 46.1% over the same period last year, in line with the performance guidelines of the company's three quarterly reports in 2017 (1.43-215 million).
Comments:
High growth of revenue and profit in 1.2017 years: steady development of LED business + consolidation of media companies
The company achieved high growth in both operating income and net profit in 2017, mainly due to: (1) the prosperity of the LED industry and the steady growth of the company's LED performance, (2) from April 2016, Beijing Dingsheng Yixuan and Beijing hundreds of millions of Wireless were included in the merger scope, and (3) from February 2017, Beijing Vientiane New Motion was included in the merger scope.
two。 The industry demand is exuberant, the competition pattern is optimized, and the company's LED business continues to develop healthily.
Under the background of the continuous strong demand of the global LED industry and the continuous transfer of the production capacity of the whole industry chain to the mainland, the domestic competitive environment and structure of China's LED industry are continuously optimized, which is mainly reflected in the continuous improvement of the industry concentration of LED chips and LED packaging in China. The company has been engaged in LED lighting and packaging for many years. As a leading domestic scale and technology LED packaging and lighting enterprise, we judge that the optimization of the competitive pattern of the LED industry in the next 2-3 years will enhance the company's overall competitiveness and profitability.
3. Coordinated and diversified development, continuous mergers and acquisitions to create a closed loop of the Internet advertising industry
In 2015, the company began to enter the Internet marketing industry through mergers and acquisitions and strategically build its second main business. since 2015, the company has completed the acquisition of Sunrise Optoelectronics (advertising logo lighting), hundreds of millions of wireless (mobile marketing), Dingyi Xuan (real estate home marketing), Vientiane Xinxing (mobile precision marketing). In January 2018, the company completed the acquisition of Hangzhou Xinli Media (TV advertising). After continuous investment and M & An integration, the company has accumulated rich experience and customers in the field of advertising marketing as well as the layout of a complete industrial chain, and is expected to continue to develop rapidly in the future.
4. Equity incentive scheme shows future prospects and confidence
On February 5, 2018, the company disclosed the 2018 Equity incentive Plan (draft), which uses restricted stock to provide equity incentives to the core backbone of the company. this equity incentive scheme provides a good incentive mechanism for the core backbone of the company. it plays an important role in the future development of the company and the promotion of its core competitiveness. at the same time, the incentive scheme puts forward business objectives for the future performance of Nippon Optoelectronics, Hengrun Optoelectronics and hundreds of millions of Wireless. Demonstrate the company's future prospects and confidence.
Investment advice:
We expect the company's net profit from 2018 to 2019 to be 396 million yuan for RMB307 and RMB 0.45 for EPS, respectively, maintaining the target price of 7.6 yuan (corresponding to 22 times PE in 2018).
Risk hint: Internet marketing business performance is not up to expectations; acquisition goodwill impairment risk
