Incident: The company issued the “Acquisition Report”. China Telecom obtained 66.78% of Hualu Group's shares through the free transfer of state-owned shares, which led to indirect control of 33.94% of Yihualu's shares.
Strong alliances and collaborative development of the digital economy ecosystem: With years of exploration in the field of data elements, Yi Hualu has rich experience in all aspects of data collection, storage, management, use, and ease of use, and is in a leading position in the field of data transactions and data element circulation. China Telecom has a relatively complete science and technology innovation system in the field of electronic information, and dominates technology in the fields of electronic equipment, network communication systems, industrial infrastructure, and network security. Hualu Group and China Telecom have a high degree of business collaboration in the Internet communication and digital economy industries. After this restructuring is completed, within the same group, the two sides are expected to achieve stronger business collaboration and cooperate in building an ecosystem in important fields.
Guoxin led a determined increase in shares in Yi Hualu. On November 10, the company released the “Report on Issuance of Shares to Specific Targets”. It issued 57.46 million shares at a price of 27.51 yuan to 12 targets including Guoxin Investment, with a total amount raised of 1,581 billion yuan. Guoxin Investment received the highest number of allocations in this offering. After the issuance was completed, its shareholding ratio reached 3.02%, making it the company's third largest shareholder. According to data from Tianyansha and Guoxin Holdings's official website, Guoxin Investment, as a wholly-owned subsidiary of Guoxin Holdings's equity operations sector, serves the value management of listed companies of central enterprises, and promotes the rational flow, preservation and appreciation of state-owned capital by steadily carrying out specialized operations to hold shares in listed companies. At present, Hualu Group, the actual controller of Yi Hualu, has been merged into China Telecom. We believe that the fixed increase led by Guoxin this time is expected to further strengthen the company's state-owned assets, and we are optimistic about the company's future market expansion in the credit and innovation market.
Data element industry leader. Yi Hualu is the first in the industry to provide relatively complete first-level data element development and data element capitalization services. Since taking the lead in establishing the first data asset filing service consortium on September 8, Yi Hualu has successively cooperated with more than 10 prefectures, cities, national ministries and departments in data asset evaluation and registration. In the field of first-level data element development, Yi Hualu has now also accumulated full-process project experience with benchmark demonstration significance, and is in a leading position in the industry.
Investment advice: The company's development focus is gradually shifting from digital economy infrastructure construction to the main channel of data collection, storage, governance, application and transaction business, which mainly focuses on long-term operation. We are optimistic about the company's development opportunities in the field of data elements. It is predicted that the company will achieve revenue of 1,885 billion yuan, 2,832 billion yuan, and 4.255 billion yuan; net profit of 0.06 billion yuan, 204 million yuan, and 375 million yuan; EPS 0.01, 0.31, 0.56, and PE 113X and 61X in 24-25, maintaining the “increased holdings” rating.
Risk warning: Product promotion results fall short of expectations; policy implementation falls short of expectations; market competition intensifies; technology transformation falls short of expectations.