Report highlights
The industry is growing rapidly, and the company's SaaS upfront investment has basically been completed. The company mainly provides cloud computing SaaS services, including cloud office products such as enterprise mailboxes, OA office systems, and customer management systems. After nearly 10 years of development in China, cloud computing services have mainly been invested in IaaS levels such as data center construction. In recent years, data center construction across the country has initially taken shape, and the cloud computing service model has gradually been accepted by enterprises. Especially for small and medium-sized enterprises, cloud services can greatly reduce the cost of corporate information systems. Under the call of “mass entrepreneurship, mass innovation”, demand for SaaS will explode, and the industry's growth rate will reach more than 40%. It can be said that 2016 was the first year of SaaS development.
The company's initial large-scale investment in the field of cloud services has basically been completed, and most of the related products have already been put into use.
The customer base is strong, using smart phones as carriers to integrate the company's entire SaaS service product line. The company has been working in the field of cloud services for many years and has a very strong customer base. Currently, there are 60,000,000 small and medium-sized enterprises using the company's SaaS service. The size of most enterprises is around 50 people. The average number of people using the service is around 20-30 people per enterprise. It is conservatively estimated that there are more than 1 million SaaS users. The average person pays 50-100 yuan per year, and the business can achieve annual revenue of more than 100 million yuan. In 2016, the company independently developed a smart phone that integrates the functions of a PAD+ phone, which can achieve marketing functions such as storage and management of marketing information, instant messaging, and smart dialing. It is expected that this product will be marketed and promoted within the next two months. Smartphones mainly generate revenue from phone bills. As a virtual operator, the company's gross margin can reach about 40%. Phones and cloud products are free to use, with an average monthly phone bill of 200-300 yuan per person. Assuming that 10% of the company's users use the smart phone business, this business will also contribute considerable performance growth to the company.
The development of the dual main business aims to create a big IP linked to video games. The company acquired the game company Dowhee Technology in 2015 and merged it into consolidated statements in September 2015 to increase profits for the company. Currently, games developed by Do-hee Technology have a long life cycle, and the game's monthly recharge flow has reached 50 million yuan and has remained stable. The company is optimistic about the development of the big IP concept and the new market space brought about by the video game linkage. In the future, the company will mainly develop the SaaS+ gaming business, and actively seek opportunities for outbound expansion, and continue to deepen and expand the company's dual business.
Valuation and investment advice. The company's revenue for 2016-2018 is estimated to be 423 million yuan, 613 million yuan, 736 million yuan, and net profit of the mother is 86.73 million yuan, 131 million yuan, and 181 million yuan. The corresponding earnings per share are 0.23 yuan, 0.36 yuan, and 0.49 yuan. The company's SaaS+ gaming business is developing, and its industry is growing rapidly. The company's stock price is driven by many factors, giving it a “recommended” rating.