Main points of investment

As a pure enterprise SaaS service provider, the company has accumulated hundreds of thousands of service enterprises since 2004, and is the forerunner of the domestic SaaS industry. Its SaaS application ecology has changed from a previous mailbox to a unified cloud office platform that now includes IM, OA and videoconferencing. We believe that with its first-mover advantage, customer resources and technology accumulation, the company will occupy an important market position in the enterprise SaaS field.

From the perspective of demand, basic technical services, industry growth and capital performance of the primary market, the current time point is the inflection point of the industry, and the SaaS industry is experiencing the best period of development. The popularity of cloud computing will improve the efficiency of the use of SaaS and reduce costs, liberate the company's previously limited computing and storage resources, and help the company expand its SaaS model on a large scale, and the number of users is expected to accelerate.

At present, the company has cooperated with China Mobile Limited to carry out cloud services for small and medium-sized enterprises, and it is the only listed company that provides a full range of services from cloud platform construction and SaaS application to platform support. The company's subsidiary Beijing Sanwu Unicom is responsible for the complete operation of China Mobile Limited's cloud services for small and medium-sized enterprises, with an overall market of more than 100 billion yuan. Relying on China Mobile Limited's technological and resource advantages, the number of cooperative expansion users is expected to reach 600000 in 2016 and 4 million in 2017, with a follow-up growth rate of about 50%. The revenue contribution of the third five links is expected to exceed 300 million yuan in 2018.

Daoxi Technology, a wholly owned subsidiary of the company, is a high-quality partner of Tencent Page Tour platform and Facebook Inc, promising that the net profit for 2015-2017 will not be less than 60 million, 78 million and 101.4 million respectively.

Profit forecast and valuation: the company is expected to have an EPS of 0.05,0.33 and 0.52 yuan in 2015-2017, covering the "overweight" rating for the first time.

Risk Tip: cooperation with China Mobile Limited is not as expected