Fangzheng Company's research template investment points In the future, the company will focus on the “communication manufacturing+information service” strategy, cover mainstream channels in the field of information services, and achieve “multi-screen” and “cross-terminal” informatization services for customers; further integrate subsidiary business and give full play to synergies. The company's main communication manufacturing business has relatively stable revenue, and information services are growing rapidly on a large scale, so they will gradually become the main players, and they are optimistic about the company's informatization layout and transformation to lightweight. 1. The strategic position of “communication manufacturing+information service” is becoming more and more clear, and two-wheel drive has achieved development results. Wutong Holdings positioned a “communication manufacturing+information service” strategy, acquired Shanghai Broadwing in August 2013, and merged for the full year of 2014. The main products are 3G and 4G data cards and routers, which achieve major development in foreign markets through collaboration; the acquisition of Guodu Internet in September 2014 and the merger in October to expand communication manufacturing to communication information services; and in June 2015, mutual advertising was acquired to expand the strategic layout and achieve collaboration in customer resources, sales channels, management models, and talent training. The company currently forms four categories: communication connection products, mobile communication terminal equipment, information service products, and Internet advertising. Due to good growth in information services, operating income for the first three quarters of 2015 was 1,038 million yuan, up 139.07% year on year; net profit attributable to parent company was 116 million yuan, up 286.72% year on year. 2. Actively lay out enterprise informatization platform business around information services. Guodu Internet is centered around the mobile Internet, mainly financial and Internet customers. Financial customers include major banks such as the Agricultural Bank and China Construction Bank. Internet customers include Alibaba, Baidu, Sina, Sohu, Elong, etc., as well as well-known enterprises in other industries such as Haier and Samsung. Guodu Internet provides mobile informatization services to large enterprises. It has industry-leading enterprise mobile informatization service mobile informatization platform development and operation capabilities, and provides solutions including short MMS system construction and business operation services, Weibo and WeChat operation services, the Internet of Things, LBS, and mobile clients. 3. Asset-light operation, Internet advertising breaks through traffic monetization. Mutual advertising relies on the AdInSSP platform, AdinPerformance platform, and AdinAdExchange platform. By integrating high-quality media resources, mutual advertising focuses on the accurate marketing business of Internet advertising. Mainly based on real-time bidding technology (RTB), it provides automated traffic optimization adaptation services for media channel resources, and displays the most matching advertising content, thereby more effectively displaying marketing information on the demand side of advertising to target or potential users, and improving advertising and marketing effectiveness while optimizing the value of media traffic resources. In 2015-2017, revenue reached 1,434/24.19/3,334 million yuan, net profit was 177/378/505 million yuan, and EPS was 0.76/1.63/2.18 yuan, respectively. Revenue and profit continued to grow at a high level in 2016-2017 after being completely merged with mutual advertising in 2016. Give recommendations a rating. Risk warning: Competition in the SMS market is intensifying, collaboration among subsidiaries is poor, and mutual advertising falls short of expectations.