Event: the company intends to purchase 100% equity of Vientiane Xinyi through issuing shares and paying cash from Yipingchuan and Xindong Investment. and signed the "Industrial M & A Fund Cooperation Framework Agreement" with Shenzhen DewanChongye Investment Management Partnership, which intends to use its own cash of 50 million yuan to invest in the industrial M & A fund.
It is proposed to acquire 100% stake in Vientiane and sign a framework agreement on industrial M & A fund cooperation. 1) the non-public offering shares of the company shall acquire 100% of the shares of Vientiane New Motion, and the transaction price shall be set at 560 million yuan, and the issuing share price shall be 13.47 yuan per share; in addition, the matching funds raised by the non-public offering A shares shall not exceed 250 million yuan, and the price shall not be less than 13.38 yuan per share, with a total issue of no more than 18.311 million shares. Vientiane New Motion promises to deduct non-net profits of not less than 40 million yuan, 52 million yuan, 67.6 million yuan and 77.74 million yuan from 2016 to 2019. 2) the company signed the Industrial M & A Fund Cooperation Framework Agreement with Shenzhen Dewan Chongye Investment Management Partnership on September 20, 2016. The company plans to use its own cash of 50 million yuan to invest in industrial M & A funds, with Internet advertising media as the main investment direction. The size of the fund is 300 million yuan, and the company accounts for 16.7% of the fund.
Acquire Vientiane Xinxin and improve the layout of procedural purchase links. Beijing Vientiane New Mobile Technology is a company that provides customized mobile marketing services, mainly providing accurate advertising for customers, including Procter & Gamble Co, Volvo, Yili and other industry leaders. Previously, the Shengsheng Yixuan acquired by the company mainly provides Internet search engine advertising services for the home decoration industry; hundreds of millions of Wireless provides one-stop mobile Internet marketing services; and Botu Advertising is a well-known Internet marketing service provider in the industry. The acquisition of Vientiane Xinxin integrates professional advantages such as digital marketing strategy planning, programmed purchase and data analysis, improves the important layout of programmed purchase, and realizes the layout of key points in the digital marketing ecosystem.
The investment of industrial M & A fund revolves around the focus of the company, and the follow-up extension is worth looking forward to. With the help of professional investment institutions, the company aims to further broaden investment channels, tap high-quality target enterprises, and speed up the pace of extension expansion. The M & A fund will focus on the strategic planning of the company to build the whole industry chain of Internet advertising media, with advertising media, especially Internet advertising media as the main investment direction, and lay out Internet media, Internet advertising marketing, and supporting areas related to Internet advertising media, so as to screen, reserve and cultivate high-quality assets for listed companies, and further improve the layout of the industrial chain in the field of Internet advertising media.
Profit forecast and investment advice. It is estimated that the EPS of the company from 2016 to 2018 will be 0.18,0.21 and 0.24 yuan respectively, and the net profit of homing will maintain a compound growth rate of about 50% in the next three years. Maintain the "overweight" rating.
Risk tips: the risk that the performance of M & An enterprises is less than promised; the risk of diversified business integration or less than expected; the risk of the original main business or insufficient growth rate.