Main points of investment:
The merger and acquisition targets Dex Media, and Huayi Schwab has both TOP25/20/10 qualifications in the field of public relations and China 4A qualification in advertising to enhance its core competitiveness. Dex Media is one of the earliest and largest professional media groups in China, and has been awarded the "Chinese Local Public Relations TOP10" for 15 years in a row. It has good partner resources, including 80 media executives, 26 overseas media, 2718 Internet media and so on. Ranked among the top three in the industry in 2016, Dex Media focuses on the integrated marketing and communication of product brands and corporate brands to create strong brands for customers. With the addition of Dex Media, Huayi Schwab has both TOP25/20/10 qualification in public relations and China 4A qualification in advertising, and the company's competitiveness in public relations and advertising will be further strengthened.
Invest in YOKA, the company expands its business to luxury goods and high-end cosmetics, and opens a new operation mode of "content + e-commerce". As the first network platform and fashion new media in China to lead high-end fashion consumption and serve high-quality fashion life, YOKA always adheres to the multi-channel marketing strategy of high-end vertical new media platform. Serve more than 250 brands, including LV,HERMES,BURBERRY, etc. The mobile end of YOKA includes three main APP: clothing and Beauty, HOT Man and Fujun. After joining Huayi Jiaxin, YOKA will explore the new operation mode of "content + e-commerce" to enhance its cash realization ability, and the company will continue to learn from its operational experience and resources in content marketing.
Join hands with Smaato to realize the supply relationship of the advertising side based on the company's advertising platform and make great strides forward in the strategy of globalization. Smaato is the world's leading global real-time advertising platform for mobile publishers and app developers, serving more than 100000 publishers and app developers, partnering with 91 of the top 100 advertisers of the Advertising Age, with more than 1 billion mobile users per month and more than 300 billion monthly displays. At the same time, it covers San Francisco, New York, Hamburg, Singapore, Shanghai and other places. Smaato's global advertising exchange platform connects both supply and demand. Through the standardized platform of Smaato, Chinese developers can quickly access the corresponding advertisers in the global market.
Consolidate the basic business, take "M & A + integration + synergy" as the main line, and deeply excavate the value of synergy. Supported by "Big content and big data", the company has become the world's leading value marketing service provider by constantly improving the global layout, strengthening resource integration and business coordination. (1) big data: layout domestic and foreign mobile marketing, procedural purchase and other high-quality targets; (2) major content: layout fashion new media, entertainment and other content quality targets; (3) internationalization: open international layout, actively contact Europe, the United States, South Korea and other regions in line with the company's strategic development direction of high-quality assets. The company has gradually changed from a service-oriented company with a flat layout to a three-dimensional and fast-growing value company, from a company limited in China to an international marketing and communication group.
Profit forecast: we expect the company's EPS from 2016 to 2018 to be 0.33,0.41,0.52 yuan respectively. Considering the industry company Blue cursor ~ Printing Media's consistent forecast of PE of 30,50 times in 2016, we give the company 45 times PE in 2016, corresponding to the target price of 14.85 yuan, and maintain the buy rating.
Risk hint: the risk of business integration, the intensification of industry competition, and the performance commitment is not up to expectations.
