This report is read as follows:
The company's enterprise-class cloud communications products and brands are excellent, and its performance is expected to grow with the market dividend period; aiming overseas, it will acquire iTalk, Risheng and Shanghai Naisheng, and its international business is expected to explode.
Main points of investment:
Coverage for the first time, giving a "overweight" rating. We predict that the company's income from 2019 to 2021 will be 1.125 billion yuan (21.16%), 1.34 billion yuan (19.11%) and 1.572 billion yuan (17.31%) respectively, and the corresponding net profits belonging to shareholders of listed companies will be 168 million yuan, 217 million yuan and 254 million yuan respectively. The EPS per share is 0.12,0.16,0.19 yuan respectively. Taking into account the upward prosperity of the communications industry and the smooth development of international business, we give a valuation of 47 times in 20032020, corresponding to a target price of 7.52 yuan.
The enterprise SaaS market is in the dividend window of rapid development, and the international business is expected to grow rapidly. Company 263 cloud communication products and brand double excellent, high market recognition; the company and Japan NTT joint venture to establish Shanghai Naisheng, acquisition of Hong Kong I-Access. The business adjustment is smooth, the overseas market is expected to be expanded, and the international business growth is expected.
Individual-level business blossoms at many points, and the overseas Chinese market expands to inject vitality into development. The prospect of overseas Chinese communications market is huge, the company takes the lead in cross-border communication technology, and the acquisition of iTalkBB has become the largest Chinese and Korean telecom operator in the world; due to the reduction of international personal data roaming charges, personal overseas data roaming business is facing adjustment, overseas Chinese home phone (VoIP), television (IPTV), and mobile communication business (MVNO) profit model is perfect, individual business is stable.
Catalyst. The enterprise communications market is growing rapidly, 5G businesses are increasing their demand for video conferencing ahead of time, and Naisheng's overseas communications market, a joint venture between the company and NTT, has expanded smoothly.
Main risk factors. Competition in the communications industry has intensified; trade war policies, economic environment, and the expansion of overseas markets have been blocked.
