The company plans to purchase 90% of the shares of Guozhengtong by issuing shares and paying cash, and the transaction price is 1.665 billion. At the same time, in order to improve the integration performance of this transaction, the company plans to issue shares to no more than 5 other specific investors to raise supporting funds, the total amount of supporting funds raised shall not exceed 554 million yuan.
Guozhengtong is a leader in the domestic identity authentication and anti-fraud industry, mainly for domestic banks, telecommunications and Internet enterprises and other customers to provide multi-source fraud prevention services. The company started from the original identity card information of the Ministry of Public Security and the authenticity verification of education and student status information, and has formed a fraud-proof real-name authentication product containing a variety of data sources.
The company has been ploughing this sub-field for many years, and at present, it has formed a significant competitive advantage over its competitors in terms of data sources and customer channels. In the future, driven by the trend of telecom and Internet real-name system, the company's traditional business will continue to grow rapidly. At the same time, the company is actively expanding innovative businesses such as precision marketing and government big data, which is expected to open up potential growth space.
The acquisition of Guozhengtong will open a new landscape of identity authentication and anti-fraud business, while Hua Ming's rail AFC business is expected to form effective coordination with Guozhengtong. After the acquisition of Guozhengtong, Hua Ming can connect the AFC system with Guozhengtong and quickly verify the identity of the gate passers-by, so as to enhance his competitiveness in the field of AFC system. At the same time, for Guozhengtong, the cooperation with Hua Ming broadens its own business scope and increases the application scenarios of multi-source fraud prevention business.
Profit forecast and investment advice: according to the performance commitment, the net profit after deduction in 2017 is not less than 85 million yuan, the cumulative net profit in 2017 and 2018 is not less than 210 million yuan, and the cumulative net profit in the three years from 2017 to 2019 is not less than 367 million yuan. Without considering the factors of consolidation, it is estimated that the net profit attributed to the parent company in 2017-2019 is 0.33,0.45 and 55 million yuan respectively, and the EPS in 2017-2019 is 0.24,0.33 and 0.40 yuan per share, respectively, compared with the same period of 2017-2019. For the first time, coverage gives a "highly recommended" rating.
Risk hint: the business development of Guozhengtong is lower than expected; the business coordination between the two sides is not as expected.
