This report is read as follows:
Ovi is expected to make a two-line breakthrough in the field of military communications and mobile Internet. In particular, the optimization of the program for the acquisition of snow carp will dispel the market's concern about the loss of management of snow carp.
Main points of investment:
Maintain the target price of 20 yuan, maintain "increase". The market believes that the pace of transformation of Ovid Communications is slow. In fact, the company's military communications business has achieved initial results, after the optimization of the acquisition of snow carp, the mobile Internet business is also about to land, the company's fundamentals will take on a new look and usher in a new growth. Due to the more fierce competition in the main business of network optimization, the gross profit margin declined, and the EPS in 2016-2018 was adjusted to 0.08 yuan (- 65%) / 0.1 (- 63%) / 0.12 yuan. (if the snow carp is combined with the table, the EPS is 0.35 EPS 0.45). Taking into account the large fluctuations in the market, maintain the target price of 20 yuan, maintain "increase".
After winning military orders, the military communications business has achieved initial results. Aowei announced that he recently received a letter from a bureau of the equipment Development Department confirming that the company was the winning bidder of "a certain information system video and audio subsystem" with a bid amount of 50.89 million yuan. The bid winning of this project proves the overall capability of the company in the national defense information construction, and lays a good foundation for the extension of other projects. In the next few years, the informationization of national defense will become an important tuyere of the communications industry, and the military communication system will play an important role in the future battlefield. As a scarce military qualification communications high-tech enterprise in the three northeastern provinces, the company is expected to become a key local support enterprise.
The acquisition of snow carp is optimized, and the transformation of the mobile Internet is about to land. By acquiring snow carp, the target of the scarce mobile game platform, Owei entered the mobile Internet game platform business, and accumulated huge amount of user data by providing application release, agent payment and other services to CP, laying a solid foundation for game distribution and precision marketing business in the future. Recently, the company has optimized the acquisition plan, from the original 100% cash acquisition to 60% share payment and 40% cash payment, which is now in the reply stage of the inquiry letter. We believe that the optimization of the acquisition plan has dispelled the previous market concerns about the loss of management of snow carp. With the landing of the acquisition, the company will open a new chapter in the field of mobile Internet.
Risk hint: the layout of energy Internet is not successful, and the competition in the optical fiber and cable industry intensifies.
