Event: on March 23, the company announced that Changshi Communication, a wholly-owned subsidiary of China Mobile Limited Communications Group, had become the successful candidate for the procurement project of network integrated maintenance service from 2020 to 2022.
Comments: 1, the winning bid amount first, ramming thick performance shows strength
According to the company's statistics, the total amount of the network comprehensive maintenance service procurement project of China Mobile Limited Communications Group from 2020 to 2022 is expected to be about 3.444 billion yuan, and Changshi Communication, a wholly owned subsidiary of the company, has become the candidate for winning the bid. the winning areas include Shanxi, Fujian, Shanghai, Liaoning, Guizhou and Guangdong, which are expected to contribute about 923 million yuan in revenue, accounting for 34.46% of the listed companies' revenue in 2018. Will effectively support the company's 2020-2022 revenue, ramming performance.
In addition, in the tender for the project in China Mobile Limited's 9 provinces, a total of 27 units won the bid, while among the 6 provinces in which Changshi Communication won the bid, the largest number of winning provinces and the overall contract purchase amount ranked first, demonstrating the company's strength in network maintenance services.
2. Maintain the advantages of traditional entrusted maintenance services and continue to prospectively layout the resource pool of 5G base station sites.
As a third-party communication network technology service provider with cross-regional and comprehensive operation and maintenance capabilities, Changshi Communications has covered 28 provinces and regions, including Guangdong, Yunnan and Zhejiang, after more than a decade of operation and market expansion. The winning bid further reflects the advantages and strength of the company's network maintenance services, and in order to further adapt to the development of the 5G era, the company will carry out the construction of the site resource pool by reusing the existing network maintenance service staff. it is worth looking forward to to complete the multi-dimensional planning and selection of the site of "site availability + coverage effect + construction cost + use cost + project efficiency".
3. The troika is neck and neck, and the company continues to push forward.
In the past few years, the company has completed the layout of the troika side by side: the completion of the merger and acquisition of Chuangshi Mandao, the enterprise short message service provider of the first camp in China, actively layout the application of the scene, and the profitability is expected to continue to improve; merger and acquisition of Changshi Communications, become the first echelon of domestic network maintenance service provider, while continuing to maintain the leading edge, build 5G site resource pool for 5G reserve, card position 5G Merger and acquisition of Jiahua Information, based on the rapid development of mobile payments, the use of their own communication resources to gradually participate in artificial intelligence applications, financial technology business efficiency is expected to be greatly improved.
Profit forecast and investment advice: the company locates itself as the leading operator of cloud communications scene in China, focusing on developing three major product lines, such as network maintenance, enterprise cloud communications and financial information services, and the troika goes hand in hand. We are optimistic about the medium-and long-term development of the company. Considering the impact of the provision for impairment of assets in 2019, the net profit in 2019 will be reduced to-1 billion, and the net profit in 2019 is expected to be lowered from 3.8 and 470 million yuan to 2.6 and 320 million yuan in 2020-2021 due to the decline in the gross profit margin of the enterprise short message business.
Risk hint: listed companies recognize the risk of large goodwill and goodwill impairment, the risk of unsmooth asset integration, and the SMS industry faces industry competition to further reduce gross profit margin.