I. Overview of events
The company and Hangzhou Ansiyuan Technology Co., Ltd. signed the Strategic Cooperation Framework Agreement on September 23, 2017 in line with the principle of "giving full play to their advantages, mutual promotion and mutual benefit". The signing of this agreement does not constitute a related party transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the Administration of Major Asset reorganization of listed companies.
II. Analysis and judgment
Sign a strategic cooperation framework agreement with an Siyuan to explore the emerging business direction of information security. The company and an Siyuan signed a "strategic cooperation framework agreement". An Siyuan is an excellent developer of distributed security instant messaging system in China. provide party, government, military and state-owned enterprise users with instant messaging deployment and technical support services based on private cloud An Siyuan's next generation distributed security instant messaging product, Enterprise Secret message / Government Secret letter, has been applied and received good feedback from hundreds of government and enterprise users. The establishment of a strategic cooperative relationship between the company and an Siyuan will further integrate their respective advantageous resources, strengthen cooperation in product research and development and business development, and make use of the platforms of listed companies, users and resources in the communications industry. The advantages of information security technology will be civilian, so as to seek win-win cooperation interests of both sides. The signing of this strategic cooperation framework agreement is in line with the company's strategic plan of "committed to becoming an outstanding domestic information service provider", and is the company's attempt to actively explore new businesses such as information security, which is conducive to the company's further expansion of its main business.
Continue to win the bid for wireless ring network equipment procurement projects, speed up the expansion of wireless ad hoc network market company independently developed ad hoc network equipment has made an important breakthrough in market expansion, has won the bid China Mobile Limited emergency communications procurement project (10.53 million yuan), Fujian Armed Police Corps conference communication guarantee project (2.93 million yuan), for the company's follow-up expansion in the ad hoc network market has taken a strategic step. During the reporting period, the company continued to strengthen the technical research and development, resource integration and market expansion of ad hoc network projects, actively expand various application fields of ad hoc network, and accelerate the implementation of the company's ad hoc network market strategy. The company will actively expand various application fields of ad hoc network, continuously increase the revenue share of wireless ad hoc network in the company's business, and accelerate the implementation of the company's ad hoc network market strategy. The company will continue to increase resource investment in ad hoc network services based on existing communication network technical services, and extend business expansion to ICT, Internet of things and other related areas through endogenous growth and epitaxial mergers and acquisitions.
Accelerate the expansion of markets at home and abroad, increase R & D investment to achieve technological innovation companies to continue to maintain market leadership in Fujian, at the same time in Guizhou, Guangxi, Jiangxi, Chongqing and other provinces continue to expand, and achieve a certain market share. In the overseas market, the company closely follows the development route of "Belt and Road Initiative" of equipment suppliers such as ZTE Corporation, increases the investment of resources in Southeast Asia, and sets up a new Sri Lankan subsidiary. At the same time, the company continues to track the trend of technological development in the industry, increase investment in research and development, introduce high-quality communications talents, provide technical support for the company's business development, and achieve continuous technological innovation. In 2016, the company added software copyrights such as centralized monitoring and management platform for 3G/4G mobile communication optical network features, customer presentation system based on key customer data, LTE-FDD wireless test data management platform application software v4.0, power intensive network management system software v2.0, etc.
Third, profit forecast and investment suggestions
It is estimated that the EPS from 2017 to 2019 is 0.65,0.83,1.04 yuan respectively, and the corresponding PE is 85.38,66.87 and 53.37 times, respectively. As the company is a secondary new stock, the valuation level is relatively high, and the company expands from the region to the whole country and overseas. in view of the expectation of epitaxial mergers and acquisitions, the company is given a certain valuation premium, giving the company 105-110x PE in 2017, and the reasonable price range for the next 12 months is 68.3-71.50 yuan. Maintain the "highly recommended" rating.
Fourth, risk tips:
The competition for communication network management services is fierce; the expansion of markets at home and abroad is blocked; and the progress of fund-raising investment is not as expected.