Events:
Sanwu Interconnection plans to issue shares and pay cash to buy a total of 100% equity in Daoxi Technology held by Gong Zhengwei, Sheng Zhen, Wu Rongguang and Ying Ruixuan Investment, and raise supporting funds. The transaction price of the underlying asset is 715 million yuan, and in this transaction, the proportion of share consideration and cash consideration is 54.35% and 45.65% respectively.
Main points:
1. Daoxi Technology deeply ploughs the field of game research and development, and has launched a number of boutique games.
Daoxi Technology is an online game developer. Since its establishment, the company has developed and launched a number of web games and mobile games, forming three business lines of strategic games, role-playing games and social games. At present, Daoxi's science and technology business income mainly comes from "Urban Defense three Kingdoms", "World hegemony" and "War hegemony", among which "Urban Defense three Kingdoms" has been recommended by Tencent Game Hall many times, and the maximum monthly recharge has exceeded 13 million yuan. there are more than 28 million players. A number of page games and mobile games will be officially put into operation in the next two years, and more than ten page games and mobile games will officially enter the market in the next five years, providing protection for follow-up product development and reserves. At present, the company has a good cooperative relationship with Tencent, Facebook Inc and other platforms, and will strengthen the development of Baidu, Inc., 37wan, 51wan and other platforms as well as the three major operators in the future.
2. The acquisition of the third five Interconnection will deepen the development strategy of the big Internet field.
Through this acquisition, Sanwu Interconnection will enter the online game industry, further helping the company to expand the depth and breadth of integrating resources in the big Internet field. The traditional main business of three-five interconnection includes Internet integrated services such as website construction, enterprise mailbox and network domain name, and has accumulated a large number of channels, stock customers and rich platform experience in the original mobile office platform business. at present, the company's mobile office platform covers more than 20 cities across the country, with a total stock of more than 1 million customers, with a huge base of potential game players. With the help of the advantages of online and offline channels, the target company can achieve dual-channel interactive promotion. At the same time, the virtual operator qualification of the three-five interconnection can reduce the cost of game promotion in a variety of ways, truly realize the transformation of the business model of "free first" and "user is king", and coordinate the development of both sides. This acquisition will also become the benchmark project of the company's large Internet strategy, laying the foundation for the further development of mergers and acquisitions in the future.
3. The target company will significantly enhance the profitability of the company.
The transaction price of Daoxi Technology is relatively lower than that of other comparable game companies, and the other party promises that the net profit of the target company belonging to the shareholders of the parent company in 2015,2016 and 2017 is not less than 60 million yuan, 78 million yuan and 101.4 million yuan respectively, while the net profit of the Trinity Interconnection in 2013 is 13.76 million yuan. Therefore, this acquisition will significantly improve the profitability of the company.
4. Investment suggestions
Since 2014, the company has shrunk hardware to software, and with the gradual increase of ARPU value and the development of large enterprise customers, the company's future performance growth will gradually accelerate, and mergers and acquisitions will further improve the company's profitability. we predict that the corresponding EPS for 2013-2016 will be 0.06,0.22,0.32, respectively, and the corresponding PE is about 208.59, 57.65 and 40.39 times, which is a reasonable level in the computer industry. Give the company a "recommended" rating.
Risk hint
The product development of mobile games is not smooth.
The promotion of the new game of Daoxi Technology was not successful.