The company recently announced: 1) it plans to invest a total of 90 million yuan in 48% of the interest of “Ispace”; 2) it plans to invest 21% of Beijing Union Win-Win Advertising Co., Ltd. with 100 million yuan; 3) it plans to invest 19% of Tianjin Contact Preferred Network Technology Co., Ltd. with 13.4 million yuan; 4) it plans to invest 40.7% of Chongqing Yidong Technology Co., Ltd.'s equity of Chongqing Yidong Technology Co., Ltd. with a total of 55 million yuan; 5) it plans to increase the capital of Sun Company “Liao Financial Services” by 202 million yuan.
The layout of the communication platform was speeded up, and Haina Baichuan demonstrated its strength. The communication platform currently carefully cultivated by the company is a medium- to long-term strategic direction based on the growth and cooperation ecosystem. The “ispace” invested this time is Apple's first-level retail partner in China. It has 13 stores in 7 cities in China, with a weekly traffic of more than 45,000 people. This is an important initiative to further strengthen offline channels for smart products after building flagship stores in fund-raising projects. The “joint win-win” investment has rich experience and customer resources in the advertising platform system, laying a solid foundation for connecting OS advertising platform systems, while “Contact Preferred” focuses on operating a global lifestyle product. The recent launch of the cross-border e-commerce website “Global U Choice” is an important addition to the “Contact Mall”. Expanding and strengthening the e-commerce business is the key to achieving high volume of the company's high-quality hardware products, and “Chongqing Yidong” is a drone R&D manufacturer with core technology and will become an important part of the company's IoT strategy. For example, the combination of VR and drone aerial photography has provided users with a better visual experience.
Increase internet finance and get closer to users. This year, the company officially announced the establishment of an Internet finance subsidiary and launched a fixed increase plan to invest 400 million yuan to build a communication financial service platform. On the one hand, it will help lower the consumption threshold and speed up the popularity of smart products and increase market share. On the other hand, it will provide important support for the development of e-commerce business, forming a healthy and stable internal business model.
Recruiting talents strengthens the foundation and provides more impetus for development. The company announced the appointment of three deputy general managers at the same time, Mr. Dai Renfei, Mr. Li Xuedong, and Ms. Zhao Shang. Among them, Dai is always a senior expert in the field of consumer finance. Mr. Li has worked in the Zhejiang radio and television system for many years, while President Zhao has extensive experience in enterprise management. The continuous addition of outstanding talents means the company's booming development momentum and huge growth potential.
Maintain a “Highly Recommended - A” rating. We maintain the 2016-18 EPS judgment of 0.61 yuan, 0.88 yuan, and 1.19 yuan. The company's integration of high-quality resources from an international perspective is intensifying, the VR ecosystem is advancing at an accelerated pace, opening up online and offline promotion channels, and will eventually explode with the unique competitive advantage of integrating software and hardware.
Risk warning: Market competition intensifies, software and hardware are being launched more slowly than expected, and R&D strength is insufficient