The company recently announced: 1) it plans to invest a total of 90 million yuan in 48% of the interest of “Ispace”; 2) it plans to invest 21% of Beijing Union Win-Win Advertising Co., Ltd. with 100 million yuan; 3) it plans to invest 19% of Tianjin Contact Preferred Network Technology Co., Ltd. with 13.4 million yuan; 4) it plans to invest 40.7% of Chongqing Yidong Technology Co., Ltd.'s shares in Chongqing Yidong Technology Co., Ltd. by a total of 55 million yuan; 5) it plans to increase the capital of Sun Company “Liao Financial Services” by 202 million yuan.
The layout of the communication platform was speeded up, and Haina Baichuan demonstrated its strength. The company's current meticulous communication platform is based on a medium- to long-term strategic direction for the growth and cooperation ecosystem. The “ispace” of this investment is Apple's first-level retail partner in China. It has 13 stores in 7 domestic cities, with weekly traffic exceeding 45,000 people. This is an important initiative to further strengthen offline channels for smart products after building flagship stores in fund-raising projects. The “joint win-win” investment has rich experience and customer resources in the advertising industry, laying a solid foundation for connecting OS advertising platform systems, while “Contact Preferred” focuses on operating a high-quality global life The recent launch of the boutique cross-border e-commerce website “Global U Choice” is an important addition to the “Contact Mall”. Expanding and strengthening the e-commerce business is the key to achieving a high volume of the company's high-quality hardware products, and “Chongqing Yidong” is a drone R&D manufacturer with core technology and will become an important part of the company's IoT strategy. For example, the combination of VR and drone aerial photography has provided users with a better visual experience.
Increase internet finance and get closer to users. This year, the company officially announced the establishment of an Internet finance subsidiary and launched a fixed increase plan to invest 400 million yuan to build a communication financial service platform. On the one hand, it will help lower the consumption threshold and speed up the popularization of smart products and increase market share. On the other hand, it will provide important support for the development of e-commerce business, forming a healthy and stable internal business model.
Recruiting talents strengthens the foundation and provides more impetus for development. The company announced the appointment of three deputy general managers at the same time, Mr. Dai Renfei, Mr. Li Xuedong, and Ms. Zhao Shang. Among them, Dai is always a senior expert in the field of consumer finance. Mr. Li has worked in the Zhejiang radio and television system for many years, while President Zhao has extensive experience in enterprise management. The continuous addition of outstanding talents means the company's booming development momentum and huge growth potential.
Maintain a “Highly Recommended - A” rating. We maintain the 2016-18 EPS judgment of 0.61 yuan, 0.88 yuan, and 1.19 yuan. The company's international perspective and high-quality resource integration will increase, the VR ecosystem will accelerate, open up online and offline promotion channels, and eventually explode with the unique competitive advantage of software and hardware integration.
Risk warning: Market competition intensifies, software and hardware are being launched more slowly than expected, and R&D strength is insufficient