Main points of investment:
The combination of endogenesis and extension will transform and upgrade to the new big data application service provider. Felix is one of the most important domestic intelligent conference system solution providers, relying on the independent core technology (PRSMBus, streaming media real-time bus), which has become the industry standard, to maintain the domestic leading position in terms of market share. The company is transforming and upgrading to the new big data application service provider through the endogenous development as the core of the endogenesis and extension of the development model. At present, the company has formed two main businesses: the traditional intelligent conference and the new big data. The company uses the existing business plate intelligent conference, smart city and Internet education as the strong support and application export of big data's business development, and develops big data service market in many fields. The company gives full play to the traditional intelligent conference and the new big data strong joint business model to participate in the market competition.
Independent core technology has become the industry standard, and the traditional intelligent conference business has developed steadily. The company provides the overall solution of intelligent conference system, with 20 years of customer customized service experience. At present, the intelligent conference business is growing steadily. The company's independent core technology, PRSMBus (streaming Media Real-time bus), became an industry standard in April 2016. The company's products are based on providing complete intelligent conference system solutions for government, military and large state-owned enterprise users, through direct marketing, distribution, system and service packaging and leasing of independent products, to provide users with the solution of "on-site meeting + remote conference". At the same time, through participating in the project bidding to obtain the conference system integration order, to provide customers with complete conference services.
Big data occupies the advantage of the whole industry chain. The company will lay out big data business in 2015. At present, the advantage of the whole industry chain in big data field is prominent, and it can provide users with information solutions for communication cloud, business cloud and storage cloud. In the upstream, the company relies on subordinate companies such as Feiluxin Electronics, Oufeiling and Tianyun Technology to carry out the design and production of hardware equipment; in the middle reaches, the company mainly carries out software and system integration, and the software plate includes Donglan Digital, Jingtu Information and other subordinate companies. Integration, big data, cloud computing plate mainly has Xinhua frequency media, Ofeiling and other subordinate companies. In the downstream, the company is located in operators and service providers, such as the pipe network of smart city, tourism and so on. The company and its subordinate companies have won a number of big data credit information, big data think tank platform, "Internet + government affairs" projects. The company and its wholly-owned companies, Feilixin Electronics and Ofeiling, continue to develop big data's business and enhance the competitiveness of the company's data service model.
The employee stock ownership plan was successfully implemented. In May 2017, in order to fully mobilize the enthusiasm of the company's employees, the company began to implement the first phase of the employee stock ownership plan. Through the collective trust plan, the employee stock ownership plan will buy a total of 26.53 million shares (8.525 yuan per share) in the secondary market, accounting for about 1.85% of the company's total share capital. The smooth implementation of the employee stock ownership plan will contribute to the long-term development of the company and demonstrate management's confidence in the future of the company.
Investment advice. It is estimated that the EPS of the company in 2017-19 is 0.35,0.47,0.60 yuan respectively. With reference to a comparable listed company's valuation of 35 times, we give the company a 35-fold PE valuation in 2017 and a "buy" rating corresponding to the target price of 12.25 yuan.
Risk hint: the development of intelligent conference business is not as expected; the new big data business progress is slow.