This report is read as follows:
The company announced that it intends to use cash to acquire two Internet assets: Qunlishi and dokemeng. In the future, the company will continue to benefit from the extension and expansion opportunities brought by the high-quality investment ability of the major shareholder Xinzhongli, and comprehensively transform Internet + 's pan-entertainment industry.
Main points of investment:
The cash acquisition of the century and do can dream, the transformation of Internet + Pan-Entertainment to achieve ice-breaking, relying on the high-quality investment capacity of Xin Zhongli, the follow-up capital operation is expected to be strong. The company's original main business is the distribution network equipment business and investment business. We believe that with the outstanding ability to screen and cultivate high-quality targets in the letter of major shareholders, the company is expected to lock in the target of high-quality Internet + Pan-Entertainment by relying on M & A funds, so as to provide strong support for the company's continuous extension development and innovation Internet + Pan-Entertainment. We estimate that the net profit attributable to the parent company from 2017 to 2019 will be 87 million yuan, 126 million yuan and 178 million yuan respectively, and the EPS will be 0.11 yuan 0.15 yuan 0.22 yuan respectively (not considering the merger and acquisition for the time being), raising the target price to 27.27 yuan and maintaining the "overweight" rating.
Cash acquisition Group Century and Dookemeng, "Internet + Pan Entertainment" layout set sail. The group injects professional enterprise-level information system integration service providers and mobile game R & D operators based on big data's meticulous marketing. After the completion of the underlying asset integration, it is expected to take big data technology as the driver and the traffic operation platform as the resource to realize the two-legged walk between the Internet + solution on the 2B side and the boutique mobile game operation on the 2C side. Fully benefit from Internet + 's transformation of traditional industries and the rapid growth of the pan-entertainment industry market dividend.
Relying on the outstanding investment capacity and asset reserves of the major shareholder letter, the follow-up extension expansion is worth looking forward to. Xin Zhongli is one of the top equity investment institutions in China, which has created the myth of Baidu, Inc., Sohu.com Ltd and Huayi. At the same time, it invests widely in the fields of "three high, three, three new" at home and abroad, focusing on the leading investment in subdivided fields, such as Mei Nian Health, Longwen Education, Dongtian modelling and so on. Excellent investment capacity and asset reserves will protect the follow-up development of listed companies.
Risk hint: industry policy change risk, company business integration risk.