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【国信证券】三五互联:从互联网服务跨向广阔的终端产品市场

國信證券 ·  Apr 6, 2011 00:00  · Researches

The company will develop into a SaaS integrated service provider. Low-cost informatization products such as Internet domain names, enterprise email, instant messaging, and office automation provided by the company around the 35eQ platform have basically met the initial informatization needs of enterprises. The company has 1,400 people and sales outlets in more than 20 provinces and cities across the country, enabling the company's users to expand rapidly; the number of corporate email users of the company continues to rank first in the market. The company has completed the business distribution stage. In addition to corporate email, the company has successfully developed a 35EQ instant messaging platform and integrated corporate email and office OA systems into this platform. Enterprises only need to import employee address books to complete the loading of all employee information and communication functions. 35EQ is a communication platform similar to QQ and Feixin. At the same time, it has achieved organic integration of various functions such as email sending and receiving reminders, office business process reminders, etc. on this platform. In the future, the company will also integrate the launched CRM system and HRM and SCM systems into this platform, providing enterprises with a comprehensive SaaS service platform with overall functions that can be added or subtracted at any time according to their own needs. Through the expansion of platform functions, the company will improve more enterprise cloud service applications to simultaneously increase the number of users and ARPU value. The company is developing into a Saas integrated service provider to achieve business collaboration and increase performance. The company acquired 70% of China Post's shares with 25.9 million yuan in September 2010, and also acquired 60% of Beijing Central Asia Internet's shares with 59 million to 124.7 million in January 2011 (the exact amount depends on performance). The advantages of China Post's government, universities, and other customers will expand the company's email business market and industry, while the acquisition of Central Asia Internet will enhance the company's mobile e-commerce solution capabilities and enable the company to achieve a comprehensive e-commerce service platform. Furthermore, the acquisitions of China Post and China Asia Internet have performance promises. China Post promised to achieve a net profit of 5.5 million yuan after tax in 2010 and 7.5 million yuan in net profit after tax in 2011; China Asia Internet promised to achieve a net profit of RMB 23 million after tax in 2011 and a net profit of RMB 27 million after tax in 2012. The acquisition of these two companies will increase the company's 11-year performance by more than 19.05 million yuan, and increase the 11-year EPS by about 0.24 yuan. Saas services have basically taken shape, acquisitions have increased performance, terminal product potential is huge, company value is underestimated, and “recommended” ratings are given. In addition to maintaining the advantages of the corporate email market, Saas services have basically taken shape and are cloud service providers with great future potential; in the short term, the acquisition of 100 million Chinese Post and China Asia Internet will effectively enhance the company's performance and form synergies with the company's existing business. Entering the terminal product market this time, the company's revenue has potential to grow more than 10 times. The company's EPS for 10-12 years is expected to be 0.46 yuan, 1.19 yuan, and 32.5 yuan, respectively. The price-earnings ratio corresponding to the current stock price of 25.35 yuan is 55 times, 21 times, and 10 times. The company's current stock price is somewhat underestimated, giving it a “recommended” rating.

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