The net profit of Alto Electronics’ mid-term results increased by 16.67 times year-on-year. The company's H1 net profit was 27.341 million yuan, a year-on-year increase of 16.67 times. Among them, the operating income of LED video display systems increased by 62.56% year-on-year, and the financial electronic product H1 increased by 24.77% year-on-year. The profit forecast for the first three quarters is 40 million to 47 million yuan, and the full-year net profit target of 65 million yuan is expected to be exceeded.
Strong product strength + overall solutions + rich industry experience have created Daktronics' "golden 8 years". Daktronics is the world leader in the large-scale LED display industry. Daktronics has a wide range of products, and its integrated solutions cover swimming pools, baseball fields, basketball courts, and many other sports venues; Daktronics has strong technical capabilities, holds multiple patents, and its products have aerospace-level reliability; Daktronics products are widely used in high-level events such as the Olympic Games, NBA, and NFL. It has rich industry experience and ranks first in the world in market share. It was Daktronics' expansion in the field of sports LED displays that enabled its performance to achieve rapid growth from 2002 to 2009. During this period, the compound growth rate of revenue reached 21.5%, and the CAGR of net profit exceeded 27%.
The demand for LED construction in domestic sports venues is strong, and Alto has strong technical strength and rich industry experience. Compared with the modernization level of sports venues in developed countries abroad, the reconstruction tasks of my country's sports venues are heavy and the demand is large. There is huge potential for demand for LED advertising displays during the renovation of sports venues, and the market is in a blue ocean. Alto Electronics has strong technical strength and rich experience in operating sports LED display projects. It is expected to copy the American Daktronics model, base itself on the local market, and open up the LED blue ocean for Chinese sports venues.
At present, Alto Electronics has taken a solid step to expand the domestic market by cooperating with Zhimei Sports and First Sports to test LED display solutions for domestic sports events; through the acquisition of Qianbaihui, strategic cooperation with Zhongzhi Huati, and the renovation of Alto Electronics card-seat stadiums, it is fully prepared to expand its business layout and build competition barriers.
In March this year, Alto Electronics joined hands with Zhongzhi Huati to jointly promote the renovation of the venue. At present, the quantity and quality of domestic sports venues need to be improved. The intelligent upgrading and transformation of sports venues will help enhance the viewing experience and stimulate commercial value. Zhongzhi Huati is a professional high-tech company oriented to the fields of sports facility construction and sports event services. Alto Electronics' project experience in high-level events, combined with China Intelligentsia's sports venue design capabilities and channel advantages, can complement each other's advantages, provide more comprehensive and high-quality solutions for sports venue customers, and jointly explore the 100 billion-level market for sports venue renovation.
In July this year, Alto Electronics acquired Qianbaihui, an important part of promoting the company's sports industry business, especially the expansion of the venue renovation business. Qianbaihui has undertaken a number of sports venue engineering projects, including the design of lighting projects, installation of equipment, and installation and commissioning of lighting control systems. Representative projects include the track lighting project of the bicycle training ground of Beijing Lucheng Sports Technical School, the city lighting project of Xuannong Tennis Training Center in Beijing Xiannongtan, and the lighting project of Beijing Mentougou Stadium. Qianbaihui's accumulated advantages in sports stadium engineering projects will contribute to the company's future development of the sports industry.
On May 25, a strategic cooperation agreement was signed with Hong Kong-based Wisdom Sports to support the NBL league and Wisdom’s marathon events. In 2016, Alto Electronics continued to serve major sports events such as the European Cup and the Olympic Games. The rich sports events have brought a substantial improvement in the company's performance. At the same time, it continues to expand its layout in the four fields of equipment rental, sports marketing, venue renovation and event operations.
ANNA