Main points of investment
On the evening of May 4, the company issued a notice on signing a framework agreement on equity transfer, saying that the company plans to buy a 100% stake in Shenzhen Palm Game Technology Co., Ltd. (referred to as "Palm Game") with 536 million yuan in cash. the counterparty promised that the non-net profit of the handheld game from 2017 to 2020 would not be less than 5000 yuan, 6000 yuan, 7200 yuan and 86.4 million yuan respectively.
The general meeting of shareholders of the company shall pay 10% of the transfer payment as a deposit within five working days after the approval of the general meeting of the company. 30% of the transfer shall be paid within five working days after the completion of the registration of the change of equity transfer, and the remaining 15%, 15%, 15% and 15% shall be paid respectively after the completion of the performance commitment from 2017 to 2020.
In addition, the counterparty promised to use 30 million of the 40% of the equity transfer price paid within three months after the second equity transfer price to buy the company's shares, and unlock 20%, 20%, 20% and 40% of the shares at the end of each performance pair bet period, respectively.
The company will further improve the structure and layout of lottery games and mobile games and enhance its R & D capability. The company has excellent lottery game research and development capabilities, system platform development capabilities and a rich product line of lottery game database. Six ready-to-open lottery games developed in 2016 have been included in the welfare lottery center game library. After the acquisition of Palm Games, the company will further deepen the company's layout on the mobile side.
The deadline for the pilot project of mobile game lottery is approaching. As the current mobile game lottery business is in good condition and the market environment is more orderly, we do not rule out the possibility that the mobile game lottery project will continue to promote or even expand the pilot project.
Profit forecast and investment advice: taking into account the company's traditional advantages in ticket printing and packaging business and its continued layout in the lottery field, the company's EPS in 17-19 is expected to be 0.04 pound 0.06 pound 0.11 yuan respectively, maintaining the "overweight" rating.
Risk hint: Internet lottery policy is not as expected, ticket printing and packaging market competition intensifies
