Main viewpoints
1. After the completion of this transaction, the actual controller did not change. Before issuing shares and paying cash to buy assets and raise matching funds, Cheng Xiaoyan held 11.71% of the shares in the company and was the controlling shareholder and actual controller of the company. After the completion of the transaction, regardless of the impact of raising supporting funds, Cheng Xiaoyan holds 11.02% of the company, and Ren Zhiyuan holds 5.93% of the company. After the completion of the issue of shares and the payment of cash to purchase assets and raise supporting funds, Cheng Xiaoyan is still the controlling shareholder and actual controller of the company.
two。 After the completion of the acquisition, cloud computing will be the focus of the company's future business development. In the past, the company rented cabinets and bandwidth from operators, resold them to customers, and made use of the bandwidth reuse rate to earn the difference. Now, on the one hand, the company is gradually building its own IDC, on the other hand, it is transforming from a resource provider to a service provider.
3. Investment advice:
Looking forward to the future, the company's traditional business network optimization business will remain stable, it is expected that the construction volume of the project is decreasing, the maintenance is increasing, and the overall market cake is steadily increasing; the market concentration is constantly increasing, the price competition is still fierce, and the gross profit margin may decline. It is expected to contribute 75 million, 78 million and 80 million of profits in 2017, 2018 and 2019. Cloud computing business will be the focus of the company's development, the company relies on the construction of virtual private network sites in more than 60 cities across the country to form a differentiated competitive advantage, and is expected to achieve sustained growth in the cloud computing market; we expect the test preparation performance of the company in 2017 and 2018 to be 155 million and 200 million, and the corresponding PE (diluted) to 26x and 21x, maintaining the recommended rating.
4. Risk Tips:
The market competition of network optimization and network construction intensified; the performance of interconnected harbor fell short of expectations.
