Main points of investment:
China's leading industry IT solution provider. Tide Software is one of the three listed companies of Tide Group. It was listed in A shares in 1996 and is a leading IT solution provider in China. The company's main business includes system integration, e-government, e-commerce and so on. The company is positioned as a smart government program and service provider with profound technology and experience in the field of e-government and e-commerce.
The future leading enterprise in the field of e-government cloud. Driven by many positive factors, China's e-government cloud market is entering a period of rapid development. According to Sadie consultant data, China's e-government market is expected to reach 221.8 billion yuan in 2015. The maturity of technology is expected to promote the application of cloud computing in local government and industry solutions. In the next few years, the company will focus on the construction of local e-government cloud platform and industry e-government cloud platform. We believe that in terms of government cloud construction, the company not only has the experience of traditional IT solutions, but also has the potential resources for the construction of the underlying IT architecture of the cloud platform. In the process of accelerating the transformation to a cloud service provider, the company is expected to become a leading enterprise in the field of e-government cloud in China.
Build a more open e-commerce cloud platform. The company has accumulated in the field of e-commerce for many years, and its e-commerce solution iMai has been updated to version 3.0. the company strives to provide an open, integrated, universal, fast and scalable e-commerce platform for the Internet transformation of traditional enterprises. In the future, the company will adopt a more open architecture to build an open e-commerce platform based on cloud computing, which is expected to (1) strengthen the function of iMai e-commerce platform; (2) accelerate the promotion of e-commerce platform in other industries. Through the use of big data and other technologies to enhance the competitiveness of platform services.
Build big data application support platform. At present, the company's big data technology has been applied in public security, e-commerce, smart city and other fields. Its advantages include: (1) deep ploughing industry solutions for many years, laying a solid foundation for the industry big data. (2) adopt the idea of integration to excavate the industry big data. (3) the establishment of big data ecosystem-the company is gradually opening up big data's entire industrial chain of collection, organization, storage, calculation, analysis and visualization, and constructs big data ecosystem by integrating resources inside and outside the industry.
Profit forecast and valuation. We believe that wave software through this additional offering is expected to accelerate the pace of transformation to a cloud service provider. Relying on (1) rich experience in IT solutions accumulated in the government and industry, (2) potentially available resources of the group in the underlying architecture of the cloud platform, and (3) the background of state-owned enterprises, the company is expected to become the leading enterprise in the domestic e-government cloud. Its e-government cloud, e-commerce cloud platform and big data application platform and other projects are expected to further open up the company's profit space. We expect the company's EPS from 2015 to 2017 to be RMB 0.39,0.57,0.76 respectively, and the compound growth rate for the next three years will be 39.5%. The target price for six months is 57.00 yuan per share, corresponding to a 100-fold PE in 2016. mainly considering the company's experience in industry IT solutions in e-government cloud and the advantages of integrated cloud infrastructure resources, we think the company can enjoy a certain premium. Cover for the first time, giving a "buy" rating.
Risk hint: the risk that the speed of the e-government cloud project is lower than expected, and the risk that the progress of the e-commerce cloud platform project is lower than expected, systemic risk.
