Main points of investment
The proposed acquisition has a tree to lay out the cross-border export business. The company issued a merger plan to buy a tree in the leading cross-border e-commerce business at a price of 3.4 billion yuan. After the completion of this restructuring, the company will quickly cut into the cross-border e-commerce field with the help of the competitive advantages of a tree in cross-border export industry supply chain and overseas warehousing, and at the same time use its own Internet of things technology to coordinate with tree-based warehousing logistics and supply chain management. One tree promises that the net profit deducted from 2017 to 2019 will be no less than 210 million yuan, 325 million yuan and 425 million yuan respectively, which will greatly increase the company's performance.
There is a tree that focuses on cross-border export business and its performance is in the midst of an explosion. One tree specializes in cross-border export business. By setting up online stores on overseas online shopping platforms such as eBay and Amazon.Com Inc, it directly retails domestic goods to foreign end consumers. The delivery of goods is divided into two modes: domestic warehouse delivery and overseas warehouse delivery. In 2016, a tree achieved export business revenue of 1.504 billion yuan, an increase of 133% over the same period last year, and its net profit was 91 million yuan, an increase of 112% over the same period last year.
Competitive advantage is obvious, through the platform of listed companies to achieve development. At present, the pattern of China's cross-border retail e-commerce export industry is scattered, and there are no oligarchs. There is a tree with more than 100000 SKU products, and 13 warehousing bases have been built worldwide. At the same time, it has a number of information systems to improve business operation efficiency and has obvious competitive advantages. In addition, in the future, with the help of the platform of listed companies, there is a tree that can improve the efficiency of its logistics and supply chain management with the help of Tianze's informative Internet of things technology. On the one hand, it can accelerate investment in overseas warehouses and other business layout with the help of capital market forces.
As Tianze Information has not yet completed the acquisition, it will not consider the promised profit of a tree for the time being. We estimate that the EPS for 2017-2019 will be 0.51,0.59 and 0.63 yuan respectively, with a "overweight" rating.
Risk tips: the restructuring process is blocked; traditional business affects performance growth; and cross-border e-commerce competition intensifies.
