Events:
The company announced on the evening of December 17 that the board of directors approved the following four major matters: 1. According to the production and sales needs of its own brand mobile phones, Beijing Gome authorized Sanlian to use the "Gome" trademark; 2. Sanlian signed a "sales framework agreement" with Gome. In the future, it will rely on Gome retail channels to sell smart terminals, of which the total sales to Gome in 16-18 years will not exceed 1 billion, 4 billion, 8 billion yuan. 3. Sanlian and Gome signed the "entrusted Service Framework Agreement". In the future, Gome will provide Sanlian customers with mobile phone after-sales service and customer service; 4. Dejing applies for bank credit of 500 million, and the company provides 340 million joint liability guarantee for Dejing. At the same time, Dejing provides mortgage or guarantee in other forms.
Comments:
The support of major shareholders is unprecedented, and the sales prospect of intelligent mobile terminals is promising. In order to assist in the sales of the company's smart terminals, Beijing Gome authorized Sanlian to use the "Gome" trademark, which will pave the way for the future launch of own-brand mobile phones.
At the same time, the sales relying on Gome retail channels, after-sales and customer service entrusted to Gome show unprecedented support from major shareholders, while the total sales regulation of $8 billion in 1818 reflects the company's ambition for the future mobile terminal business. We judge that on this basis, the prospect of the company's mobile terminal business will be worth looking forward to.
The secure encryption mobile phone industry will start the quantity quickly. We judge that the market space for secure encrypted mobile phones in the special industry alone is more than 30 billion, and the market space is likely to double if the commercial market is taken into account. There are three reasons why the relevant companies and products in the industry failed to expand the market rapidly: national demand did not hit the ground, there are no nationally produced security encryption products, and failed to find effective industrial alliances to promote. However, we judge that these three factors are now mature, and the secure encryption mobile phone industry will start the quantity quickly.
The two wings fly together, and the Sanlian trading company Nirvana is just around the corner. According to the announcement, Sanlian may launch its own brand mobile phone in the future. at the same time, the sales Framework Agreement shows that the company attaches great importance to it, and we judge that it will be promising to rely on Gome's own brand mobile phone sales. In terms of secure mobile phones, Dejing and Spreadtrum, Zhongke Hongba and Yuanxin Technology have formed strategic alliances and become the only partners in the field of secure mobile phones. At present, the company has obtained some orders for aerospace science and industry, and it is expected that the layout of multiple business lines will also be expanded rapidly in the future. We believe that all the businesses of the company are in a state of readiness and have unlimited prospects in the future.
We are optimistic about the follow-up development of the company and maintain the "highly recommended-A" rating. We estimate that the net profit of Sanlian Trading Company in 16-18 is 94 million, 124 million and 205 million, corresponding to EPS 0.37, 0.49 and 0.81 yuan. The current stock price of 17.27 yuan corresponds to 47 times, 35 times and 21 times of PE, maintaining the "highly recommended-A" rating.
Risk tips: secure encrypted mobile phones do not meet expectations; market systemic risks.