Main points of investment:
Covered for the first time, the target price is 38.85 yuan: King Kong Glass used to be the leader of security glass, this time it is proposed to increase matching funds by issuing shares to purchase assets and raise matching funds from objects such as Mr. Luo Weiguang, a new value investment. Mr. Luo Weiguang will become the actual controller, and OMG Singapore 100% equity will be placed in the listed company. The main business of OMG is to provide peer-to-peer multimedia transmission solutions (CDN services). Fund-raising will be used for the construction of downstream scene application projects such as Wifi controller, virtual reality (VR) and augmented reality (AR), big data analysis. We judge that King Kong Glass may be reborn in the fire. Do not consider issuing shares, 2015-2017 EPS 0.10,0.13,0.18 yuan, with reference to 2016 industry comparable valuation and give a premium, the target price of 38.85 yuan, given the "overweight" rating.
OMG Singapore, leading independent technology, market clamping advantage: the main business is to provide peer-to-peer multimedia transport solutions (CDN services). The main products include OMG media operation platform, OMG set-top box and intelligent cache system. Its core technologies OVStream and Overlay CDN technology are ahead of their peers, which can help customers save more bandwidth under the same conditions. In the future, with the construction of fund-raising projects, they may be extended to downstream scenarios. Including Wifi controller, virtual reality (VR) and augmented reality (AR), big data analysis and so on. We judge that after OMG assets are placed in listed companies, it is expected to obtain a license in China and expand its business.
Security glass faucet, or enter a period of steady growth: King Kong originally to security glass as a source of profit, market share of more than half. The industry has actually entered a stable period, and the future catalyst of traditional business lies in the introduction of new targets for building fire prevention.
Risk hint: OMG's performance falls short of promise, investment failure and so on.