Lion technology starts with information technology services and strives to transform itself into a cloud ecological integrated service provider.
Lion Technology is committed to providing communications, network, information technology and other services for the vast number of operators, and is a leading information technology service provider in Xinjiang. In January 19, the company completed the 100% equity acquisition of Wochi Technology and freshman Interconnection, expanding the company's business in the field of mobile value-added telecommunications, Internet data center and MCN platform. In December, Green Orange players, owned by subsidiary Wachi Technology, won the Golden Wheat Award (sponsored by Hangzhou Municipal Government, Provincial Department of Commerce, Zhejiang News Group, and BABA's domestic trade platform 1688 participated in the review). The shareholder structure of the company is clear. As of September 30, 19, Wang Gang, the actual controller and chairman of the company, held a total of 26.31% of the total shares of the company. Jin Pu and Qian Qifeng are the heads of subsidiary Wochi Technology and freshman Interconnection, respectively. They hold 11.06% and 4.04% of the company's shares, respectively. In 2019, the company announced its annual results forecast with high growth flexibility and stable market confidence. The estimated net profit for 2019 is 122 million-134 million yuan, an increase of 193.95% and 223.95% over the same period last year. After the consolidation in January 19, the proportion of revenue from 19H1 information services decreased to 28.74%. The proportion of IDC services and new operators' services were 32.19% and 22.30%, respectively.
Communications, security, IDC-- benefit from the 5G construction wave, will usher in a continuous upward boom cycle.
The centralized security project in Xinjiang in 2017 and 2018 is still within the warranty period. after the 3-5-year warranty period, the Xinjiang security operation and maintenance market is expected to grow in volume, and the company, as one of the largest local companies in Xinjiang, will continue to benefit. 5G enabling video Internet of things is bound to bring new development opportunities to the security industry. The company actively promotes Security + AI, and jointly develops the market with Shang Tang and Yitu, which is expected to open up a broader space. The company rapidly expands its IDC business through the acquisition of freshman interconnection. At present, the total number of IDC cabinets that can be sold and sold is about 8000, and it is expected to expand to 30-50, 000 cabinets in the next three to five years, with deployment locations concentrated in first-tier cities and broad space for future growth.
MCN-- industry tuyere rapid growth, increase investment, based on e-commerce live broadcast to create a traffic matrix.
Through the acquisition of Wochi Technology, the company strives to create a pan-entertainment ecological cultural enterprise with "channel promotion", "digital marketing", "game distribution platform" and "IP incubation". Its Green Orange player has become the MCN organization of Sina Weibo Corp, second shot, Tencent Weishi, Toutiao Douyin, Volcano, Watermelon Video, KuGou Music and other major platforms, with head anchor resources such as "Walnut Jiazi LJ", with an average daily exposure of more than 10 million times and a daily maximum exposure of more than 60 million. By building its own traffic matrix, star cooperation (comic culture artists Cheng Lu, Siwen, Cam, etc.) and MCN platform cooperation (such as Han cooperation), the company cooperated with China Literature to develop the rapid growth of mobile reading business at the end of 19th.
Investment suggestion: the company grew strongly in the first quarter. The overall business volume of Hangzhou Waci's mobile reading business and e-commerce with goods affected by the epidemic increased rapidly. The follow-up cooperation with Ruhan and the development of new channels to bring goods are worth looking forward to. The prosperity of superimposed communications, security and IDC business continues to improve. We estimate that the company's return net profit in 19-21 will be 1.32 million RMB 406.59 million respectively. A year-on-year growth of 219%, 208%, 38%, corresponding to a valuation of 90x/29x/21x, while the 6 comparable companies we selected have an average PE of 154x/52x/38x in 19-20. We give the company a 20-year 52x target valuation and a "buy" rating corresponding to the target price of 75.40 yuan.
Risk tips: increased market competition, industry supervision, technology update, accounts receivable and other risks.