Summary of the report:
Strategic layout smart marketing, data-driven one-stop marketing program to accurately promote SaaS products. With the popularity of the mobile Internet and the fragmentation of public attention, China's online advertising market is expected to reach 800 billion yuan in 2020. Through the investment and acquisition of a number of technology companies and advertising companies, such as winning and selling Communications, Liudu Renhe, Fusu Technology, Shunwei Advertising, Lixuan Advertising and Qisi Advertising, the company cut into the enterprise SaaS field and developed the "Mobile CRM system" intelligent marketing solution-intelligent marketing "radar" platform, which realized big data's mining and analysis. In the field of smart marketing, the company realizes its long-term strategic layout with the help of epitaxial mergers and acquisitions and internal research and development, and will continue to focus on "big data + artificial intelligence" in the future, helping the company to be more accurate and efficient in marketing in the Internet + era.
LED industry warms up, actively expand overseas customers, and establish its own brand. The company's LED intelligent lighting business has benefited from positive factors such as the recovery of the industry and the reduction of manufacturing costs, and has developed rapidly in overseas markets and established its own brand. At the same time, the company increases R & D investment, actively applies for invention patents, and a number of new R & D products are sold well after they are put into the market. It is expected that the company's intelligent lighting business in LED will develop at a high speed.
The intelligent hardware industry has great potential for development, and the company is in an opportunity period of business growth. The trade war between China and the United States in 2018 has accelerated the development of China's chip industry, and the state's financial investment and policy support in the chip field are also increasing, and the upstream chip equipment will fully benefit. As the equipment supplier of Changdian Technology, Huatian Technology, Tongfu Micro Power and other enterprises, ASM PT will become the beneficiary of the rapid development of domestic chips, and Yida, as an important supplier of electronic components of ASM PT chip equipment, will fully benefit.
Investment rating and suggestions: we believe that the company in the smart marketing sector, benefiting from the rapid development of the industry and driven by downstream demand, will continue to maintain growth and successfully promote corporate transformation; the traditional business foundation is solid, nearly two decades of industry experience and stable key customer resource support, from the brand to the supply chain to lock the main customers in the future intelligent manufacturing field, a new round of high growth is expected. It is estimated that the company's EPS from 2018 to 2020 will be-0.68, 0.20, 0.24, respectively, and the corresponding PE will be-12-40-35, maintaining a "buy" rating.
Risk hint: the development of smart marketing market is not as expected, and the demand for smart hardware is not as expected.