Main viewpoints
1. The three-year commitment expires and the problem of inter-industry competition is about to be solved.
On February 28, 2014, FiberHome Technology held 5668 million shares of the company by way of equity transfer, accounting for 28.63% of the total share capital of the company, becoming the controlling shareholder of the company, and Wuhan Academy of Post Sciences was the actual controller of the company. Wuhan Academy of Post Sciences / FiberHome Technology also promised to solve the problem of inter-industry competition between FiberHome Technology and Yangtze River Communications within three years.
Changjiang Telecom announced on February 28, 2017 that it intends to publicly transfer 2% of its controlling subsidiary Wuhan Nissan. After the completion of this equity transfer, Cheung Kong Telecom's board seats in Wuhan Nissan will be reduced to less than half. Will no longer be the controlling shareholder of Wuhan Nissan. In the early stage of Changjiang Communication, Wuhan Changguang Technology Co., Ltd., Wuhan Changjiang Optical Network Co., Ltd., and Wuhan Changying Science and Technology Investment Co., Ltd., which competed with the major shareholder FiberHome Technology Group, withdrew from the field of optical communication equipment production and venture capital by means of equity transfer and business transformation. after the completion of this transaction, all the problems of peer competition between the Company and the major shareholder FiberHome Technology Group will be solved.
two。 Layout Mobile Animals networking, focus on industry applications
Changjiang Telecom established a new subsidiary Wuhan Changjiang Communication Zhaopin Technology Co., Ltd in 2014. Cheung Kong Telecom contributed 18.2 million yuan to account for 65% of the shares, while the remaining 35% was subscribed by the management and key employees of Zhaopin.
Changjiang Zhaopin is mainly based on satellite positioning, monitoring, mobile communications and other technologies, focusing on industry application solutions, taking vehicles, personnel and other mobile targets as management service objects. Research and development, production, sales of related software and hardware systems and carry out operational service business. The company has formed four major business plates, such as industry application management platform software series, vehicle positioning terminal series, personal positioning terminal series and ETC series. The business covers logistics monitoring, dynamic law enforcement, two passengers and one danger, timing driving training, urban rental, intelligent public transport, newspaper distribution, safe school bus, smart home, urban free flow ETC and GB ETC and other fields.
3. Backed by Wuhan Academy of Post Sciences, it is expected to build the fourth largest listed company platform, FiberHome Technology Group Co., Ltd. (Wuhan Academy of posts and Telecommunications Research Institute) is China's major information and communications products and comprehensive solution provider, its current FiberHome Communications, Optical Technology, Science and Technology and Yangtze River Communications four major listed company platforms, covering optoelectronics, sensor intelligence, and network equipment and other fields. According to the plan of Wuhan Academy of Post Sciences, the future business will focus on three major areas: optoelectronics and batteries, fixed network and intelligent applications, and wireless networks.
Changjiang Communication, as the fourth largest listed company platform of Wuhan Academy of Post Sciences, relying on the advantages of the group, is expected to become an important technology and business platform in new business areas in the future.
4. Investment advice:
To sum up, the problem of inter-industry competition between Changjiang Communication and FiberHome Technology Group is about to be solved, relying on the resources and platform advantages of the group. in the future, it is expected that the company will give full play to the platform advantages of listed companies in the areas of mobile animal networking and the strategic direction of the group's business. It is estimated that the EPS (diluted) of the company in 16-18 years is 0.24, 0.29, 0.34 respectively, and the corresponding PE is 93X, 78X, 66X, covering for the first time, and is recommended and rated.
5. Risk Tips:
1) risk of new business development
2) Policy risk.
