Investment events:
(1) the company intends to acquire 100% shares of Huibo Technology at 840 million yuan, of which the shares and cash pay 440 million yuan and 400 million yuan respectively, the issue price is 14.83 yuan per share, and raise supporting funds of 440 million yuan, all of which are used to pay cash consideration, intermediary fees and related taxes. (2) East Asia Qianhai Securities, which is 26.10% owned by the company, has obtained the Securities and Futures Business license issued by the CSRC.
The proposed acquisition of Huibo Technology will cut into the field of e-commerce services, the thickening of profits will be guaranteed and the business synergy effect will be strengthened. The company plans to acquire 100% equity of Huibo Technology with 840 million yuan. Huibo Technology's main business is to provide customer relationship management and precision marketing services based on data analysis to B2C retailers.
The company's products rank second in the category of customer relationship management in Taobao service market, and have high market popularity. The performance commitment is that the net profit from 2017 to 2020 will not be less than 60 million yuan, 78 million yuan, 93.6 million yuan and 112.32 million yuan respectively, if the successful acquisition will provide a reliable guarantee for the company's performance. And Huibo Technology needs to purchase a large number of short message sending services to form a better business coordination with its subsidiary Yimei Softong.
East Asia Qianhai Securities is unveiled for business, and the company holds a brokerage license. After being approved in June this year, after six months of preparation, East Asia Qianhai Securities has officially unveiled its business with a "license for operating Securities and Futures Business" issued by the China Securities Regulatory Commission. The total registered capital of East Asia Qianhai Securities is 1.5 billion yuan, and its business scope includes securities brokerage, underwriting and recommendation, self-management and asset management. The company holds the securities license, and the ecosystem is further enriched.
We will initially build an ecological system and enhance the synergy of comprehensive financial services. In the field of insurance, from January to October 2017, the original premium income of Yi'an property Insurance was 685.3314 million yuan, compared with 167.9159 million yuan in the same period last year, a year-on-year growth rate of 308%. Anke Life Insurance has been accepted and participated in the launch of the Shanghai Insurance Exchange. In the field of securities, East Asia Qianhai Securities has been officially unveiled.
In the field of credit information, Hua Dao Credit Information has built a consumer credit information sharing platform and other products and service systems, with a business income of 6.5512 million yuan in the first half, an increase of 456.02% over the same period last year. In addition, financial IT is the company's traditional main business, and Yimi Softcom has mastered big data data of mobile commerce and advanced big data technology. At this stage, the company has initially built a comprehensive financial services ecosystem.
Investment suggestion: the company is expected to have an EPS of 0.14, 0.19, 0.25 yuan in 2017, 2018, 2019, corresponding to PE 123.48, 85.84, 66.93 times, with an "overweight" rating.
Risk hint: business development is not as expected
