Main points of investment
Event: the company announced that it intends to buy the remaining 49% stake in connected Harbor jointly held by Ren Zhiyuan and AsiaInfo by issuing shares and paying cash. At the same time, it is proposed to issue shares to no more than five specific investors to raise supporting funds, with a total amount of no more than 253.8 million yuan. After the completion of this transaction, without considering raising additional shares in supporting funds, Ren Zhiyuan holds 5.93% of the shares of the listed company, making him the second largest shareholder of the company. Cheng Xiaoyan still holds 11.02% of the shares of the company, and this transaction does not constitute backdoor.
Speed up the transformation of cloud computing service providers, thickening performance to restart the pace of company expansion. After completing the acquisition of 51% stake in Internet Harbor at the end of 2016, the company once again started the acquisition of the remaining 49% stake in Internet Harbor, accelerating the pace of entering the cloud computing services market and transforming itself into an Internet integrated service provider. According to this acquisition plan, the pricing of 100% equity in Internet Harbor will be raised from 780 million yuan to 1.1 billion yuan. Accordingly, the performance commitment of connected Harbor has increased from no less than 40.5 million yuan, 69 million yuan and 93 million yuan from 2016 to 2018 to no less than 72 million yuan, 95 million yuan and 120 million yuan from 2017 to 2019. This acquisition will not only thicken the company's performance, but also lay the foundation for the company's transformation into an Internet integrated service provider. In addition to IDC and cloud computing services, Interconnection Harbor has expanded its business to VPN services, Internet access services and other value-added services. Under the background of weak growth in the traditional main business, Interconnection Harbor has once again entered the process of business expansion through mergers and acquisitions.
Hybrid cloud market is expected to dominate in the future, "IDC+DCI+SDN" to develop hybrid cloud market. Hybrid cloud combines the advantages of strong scalability of public cloud and high security of private cloud. According to IDC's forecast, hybrid cloud will occupy 67% of the cloud computing market in the future. Based on the accurate judgment of the development trend of the industry, while expanding the scale of IDC, Interconnection Harbor built or leased nearly 3000 cabinets in Beijing, Shanghai and Guangzhou; on the other hand, it cooperated with Dahe Yunlian to create the first domestic DCI network based on SDN technology, which can provide stable, flexible and flexible SDN-DCI network for IDC/ hybrid cloud users and establish differentiated hybrid cloud services for users.
At present, connected Harbor has achieved docking with leading public clouds at home and abroad, such as Amazon.Com Inc AWS and Aliyun, greatly expanding the potential customer base. At the same time, the Internet Harbour has opened the Hong Kong cloud node at the end of 2016 and obtained the Hong Kong IAS (Internet access Service) license, making steady progress in the international layout. In the future, the Internet Harbor will further increase the size of the cabinet by self-building or looking for partners, ensure the expansion demand of cloud computing business, and fully develop the hybrid cloud market.
Entering the field of VPN services and Internet access services, high-quality integrated cloud service providers set sail. The amount of data transmission between the branches of enterprises is increasing day by day, and the requirements of bandwidth and security of massive data in the process of multi-point synchronization and transmission are getting higher and higher, so the demand for VPN services is also increasing.
Competitors in the VPN market are mainly divided into two camps: basic operators and third-party service providers. Although basic operators have resource advantages, third-party service providers can provide more flexible solutions, high-quality services and rapid response, which has more potential for development. Internet Harbor began to build a virtual private network connection system in 2016, and has begun to provide VPN services to customers including Xinfeifan, a subsidiary of Wanda, and Beijing Youfan Technology. In addition, Internet Harbor also provides customers with Internet access and follow-up operation and maintenance services. At present, Internet access services have been provided for 14 Wanda plazas in three cities, and the subsequent introduction of more Wanda Plaza and other customers is expected to be accelerated. By expanding the business to VPN services, Internet access services and other areas, the Internet can provide more value-added services for users. The strong synergy between various services not only enhances the stickiness of users, but also opens more space for the development of the company.
Profit forecast and investment advice: assuming that the issue price of the shares raised with matching funds is also 9.4 yuan per share, the total share capital of the company will increase to 4.8253 million shares. We estimate that the net profit of the company from 2017 to 2019 is 150 million yuan, 210 million yuan and 300 million yuan respectively, and the corresponding diluted EPS is 0.31 yuan, 0.44 yuan and 0.62 yuan respectively. We give the company a "overweight" rating of 37xPE in 2017 with a target market capitalization of 5.5 billion yuan and a target price of 11.40 yuan.
Risk hints: 1) the traditional business competition is further intensified; 2) the performance of the connected harbor is not up to expectations; 3) the restructuring plan may fail to be audited by the regulatory authorities.
