Wutong Holdings recently announced its 2015 results, KuaiBao. Thanks to the rapid growth of the capital's interconnected business and the consolidation of mutual advertising, the company's operating revenue was about 1.5 billion, an increase of 91.57% over the same period last year; the net profit belonging to shareholders of listed companies was 167 million, an increase of about 200% over the same period last year. We believe that mergers and acquisitions in recent years have promoted the rapid improvement of the company's performance, at the same time, with the rapid development of traffic business and advertising business, the company's future performance is expected to further improve. For the first time, coverage gives a "highly recommended" rating.
Main points of investment:
Traditional communication enterprises transform Internet information services and create a holding platform. Over the past 13 years, the company has successively acquired wide-wing communications, national interconnection and mutual advertising to create a comprehensive platform company of "communications + mobile Internet services", with continuous improvement in technical strength and substantial growth in performance. After the completion of M & A, the company's business also shows a trend of diversified development.
The enterprise information industry is leading, and the growth space is constantly expanding. Guodu Interconnection is a third-party enterprise-level mobile information service provider second only to Dreamnet Technology in the industry. The company has accumulated rich experience and customer resources in the fields of mobile CRM, mobile OA and mobile animal networking. In recent years, enterprise SMS business has grown steadily, while traffic management will further open up the growth space of the company and promote the rapid development of the company.
SSP industry leader, platform integration layout for a long time. Mutual advertising is the leading enterprise in the domestic SSP industry, with outstanding technical strength and market position. Benefiting from the rapid growth of programmed purchase demand in the advertising industry, the company's performance is expected to achieve faster-than-expected growth. At the same time, the integration of related fields is also expected to further promote the resource allocation of various enterprises in the company, and greatly promote the development of the company on the basis of the completion of the gambling agreement. The layout of the platform is long-term, and the integrated development strategy is clear.
For the first time, coverage gives a "highly recommended" rating. We think that the company has played a significant role in the capital market in the past three years. It is estimated that the EPS of 15-17 years is 0.52 yuan 1.00 and 1.57 yuan, and the corresponding PE of 15-17 years is 63.44x and 21.25x respectively. In the short term, the merger table will bring the rapid improvement of the company's business: in the long run, communications, short message business and advertising business have a certain synergistic effect, and the strong integration of the platform will also promote the rapid improvement of the company's performance with great potential. Give 45 times PE in 16 years, target price 45.00.
Risk hint: platform integration is lower than expected; mutual advertising is lower than expected; SMS service is lower than expected.