On Thursday, 4G concept stocks soared. As of 14:00, 3 stocks hit the daily limit, and the increase of other stocks is as follows:
From 2G to 5G Communication technology has achieved a major change
Recently, Huawei announced the establishment of Huawei European Research Institute at the EBS (European Business Summit) held in Brussels, Belgium. The institute will support Huawei's 5G research project currently carried out in Europe, and will assist Europe in achieving digital agenda goals, promote mutual benefit and win-win results between Huawei and the European industry, and further move towards 5G communications.
"2G has become a past tense, 3G has gradually become a past tense, 4G is in progress, 5G is in the future." This sentence should basically summarize the current situation of the mobile communications industry. However, what does 2G, 3G, 4G and 5G, and the possible future 6G mean? What is the difference for users?
technology upgrade brings different experiences
To understand the above issues, you may need to start from the perspective of text. In simple terms, 2G, 3G, 4G and 5G first reflect the meaning of "generation". Semantically, G is actually the first letter of the English word "generation". Therefore, 2G, 3G, 4G and 5G are actually the abbreviations for different generations of communication technologies. In other words, 2G, 3G, 4G and 5G, if expressed in Chinese, actually mean the second, third, fourth and fifth generations. For example, 1G, which is the first generation of mobile communication system, refers to an analog mobile phone system, which has been developed and used since 1983.
From the perspective of technical standards, the technical standards or rules adopted by each generation of mobile communication technology may be different. In theory, the next generation of technology is always more advanced than the previous generation of technology. The so-called leading is mainly reflected in the dimensions of user number bearing capacity, communication data bearing capacity, service type, and bearer type. The main difference between
1G and 2G is that 1G uses analog modulation, while 2G is digital modulation. Although both use digital signals to connect to the transmitting base station, the voice of the 2G system uses digital modulation, while the 1G system modulates the speech at higher frequencies, generally at 150MHz or above. The call methods during this period are all cellular phone standards, using analog modulation and frequency division multiple access (FDMA), and are only limited to voice transmission.
In fact, the differences between 2G, 3G, 4G and 5G are also very similar. It is reflected in the difference in signal formats, the difference in frequency capacity, and the difference in the types of services that can be made.
Specifically, as an individual user, first of all, 2G, 3G, 4G and 5G mean that different types of terminal devices need to be used; secondly, the services that can be used by mobile phones will also be different. For example, 2G may only support voice and SMS services, and may not be able to support more complex mobile Internet services or support them on a large scale; thirdly, the functions that can be used based on mobile phones will be richer. For example, under 3G or 4G networks, watching videos and playing online games through your mobile phone will not be too different from those on your computer. In terms of application implementation, whether it is 2G, 3G, 4G and 5G, from the perspective of basic network environment, it means a new round of communication equipment procurement and layout. From the perspective of terminal users' use, the upgrade of each generation of communication technology also means the elimination and update of terminals. Therefore, from an economic perspective, the upgrading of communication networks often means huge investment and technological transformation, which can not only directly stimulate employment, but also directly increase output value, and also promote the reshuffle of the mobile terminal market.
5G research and development is booming to realize the Internet of Things
At present, 3G is being used, 4G is being promoted vigorously, and 5G has begun to be hotly hyped. What does 5G, which has not yet been concluded, mean?
For ordinary mobile phone users, 5G in the future will bring faster mobile Internet access and richer mobile applications. In addition to applications such as voice, text messages, videos, and games, future mobile phones may become the "remote control" of the Internet of Things era. Through your own mobile phone, you can turn on and off your home's TV, air conditioner, water heater and other electrical appliances remotely. Through your own mobile phone, you can also remotely control cars, printers, etc.
For the communications industry, the future 5G may mean the competition for the dominance of technical standards and the right to speak for patents.Each generation of communication network will form a batch of intellectual property results represented by patents, and the proportion of manufacturers participating will also affect the amount of profits they will obtain from the industry in the next few years. More importantly, the application and popularization of the new generation of communication technology will also bring about a new round of investment boom.
Therefore, although what 5G is not yet determined, the corresponding technical research has begun, and manufacturers such as Huawei have made plans for forward-looking research and development in advance. In an interview with the media, Yang Chaobin, Huawei's wireless marketing director, said that Huawei will invest US$600 million in 5G research and innovation in the next five years. The relevant national authorities are also taking the lead in organizing the formulation of 5G standards to compete for the right to speak in international standards. For many mobile phone manufacturers, they are also actively following up and researching.
Simply put, in the future, the peak online capacity of 5G will definitely be greater than that of now. In places where people are extremely dense, the number of calls that can be used simultaneously will be greatly increased.
Secondly, the Internet speed must be faster than 4G. Nowadays, mobile phone users who use 4G services can already feel the joy of 4G services surfing the Internet at high speed, watching movies smoothly, and playing games happily. The future 5G will be better than the current experience. Watching TVs in high-definition format with your mobile phone is no less than the sensory enjoyment of HD TVs.
Furthermore, mobile terminal devices will also undergo great changes. In addition to the improvement of the mobile phone's technology, the upgrade of mobile communication standards will also drive the upgrade of mobile phones, including the clarity of the mobile phone screen display, etc. (State Intellectual Property Office)
Tags: 5G communication
Hengbao Co., Ltd.: Layout vertical Internet finance and transform into a service platform operator for small and medium-sized merchants
Hengbao Co., Ltd. 002104
Research institution: China Merchants Securities Analyst: Hao Biao Date of Writing: 2015-05-14
Hengbao Co., Ltd. released a plan for a 1.2 billion private placement, with the direction of fundraising and investment connected, and deeply deploying the vertical Internet finance field of small and medium-sized merchants to achieve a gorgeous transformation to a service platform operator. The target price was raised to 35.00 yuan.
Event: Hengbao Co., Ltd. announced a plan for a private placement. The company plans to issue no more than 69.2042 million shares to five targets including Jiutai Fund and Ping An Asset Management at a price of 17.34 yuan per share, with a raised amount of no more than 1.2 billion yuan, with a lock-in period of three years. The fundraising and investment direction is 650 million yuan for service network and system construction projects of small and medium-sized merchants, acquiring 51% equity project of Shenzhen Yikayi Technology Co., Ltd. of 150 million yuan, mPOS overall solution research and development and industrialization projects of 200 million yuan, and a supplementary working capital of 200 million yuan.
fundraising and investment projects are linked together, pointing to the overall solution of Internet finance and commercial services for small and medium-sized merchants: The company has established a strategy of upgrading from solution providers to service platform operators, and has entered the fields of Internet finance and Internet commercial services. The direction of fundraising and investment in private placement is linked together and has clear ideas. Based on the overall solution research and development and industrialization project of mPOS, it develops and produces mPOS, an intelligent mobile payment device for nearly 60 million small and micro merchants markets, with a construction period of 12 months; Yikayi mainly operates member management system software based on cloud computing SaaS model, uses core technologies such as cloud computing and electronic member cards to help merchants improve customer loyalty and increase merchant sales through marketing methods such as points, value storage, and electronic coupons. After the acquisition is completed, it will fill the company's ability gap in member management; in terms of service networks and systems for small and micro merchants, it will make full use of the company's long-term good cooperation accumulated by the company with banks and other acquiring institutions in traditional business fields. To make relationships, through mPOS released by the merchant terminal, a large number of small and medium-sized merchants' purchase, sales, finance, marketing and other systems and data are integrated, a mobile payment network that aggregates multiple online and offline payment methods and integrates other value-added services, build a highly sticky merchant payment system and merchant value-added service network, strive to achieve the goal of having 1 million active merchants after three years of construction, and finally use big data analysis and other technical means to gradually provide small and medium-sized merchants with financial services such as data loans, precision marketing and other commercial services, forming an "Internet + Finance" and "Internet + Commerce" operation service model, thereby creating an overall solution for financial and commercial services for small and medium-sized merchants.
"Strongly Recommended-A" rating: It is expected that the EPS from 2015 to 2017 will be 0.64, 0.84 and 1.03 yuan, respectively, and the current price corresponds to 33/25/21 times PE, respectively. Considering that the company's upgrade and transformation into a service platform operator is highly feasible, the target price has been raised to 35.00 yuan, and the "Strongly Recommended-A" rating is maintained.
Risk warning: Internet financial policy risks; there are still uncertainties in the transformation and extension strategy
Dafu Technology: additional issuance enters the field of smart terminal blue ocean. Platform strategy helps to realize intelligent manufacturing
Dafu Technology 300134
Research institution: China Merchants Securities Analysts: Luo Cong, Wang Lin, Zhou Yan Writing date: 2015-04-22
Dafu Technology announces the additional issuance plan, intending to issue no more than 80 million shares in private placement, and raise no more than 4 billion yuan to be used to build flexible OLED display modules, USB3.1 Type-C connectors, precision metal structural parts and other projects. This additional issuance will improve the company's common manufacturing platform, help the company enter emerging blue ocean fields such as Type-C connectors, metal structural parts, OLED display modules, and significantly enhance the company's performance. It is expected that the company will consider additional issuance of additional examinations in 2015-17 to be 0.68/1.17/1.64 yuan, maintaining the "strong recommendation-A". Taking into account the company's growth certainty and subsequent external extension expectations, a 45-fold PE in 2016 is given, with a target price of 52.60 yuan.
additional issuance improves the common manufacturing platform and enters the emerging blue ocean field. This additional issuance project has improved the company's common manufacturing platform and laid the foundation for the company's short-medium- and long-term development. Type-c and metal structural parts projects expand production capacity and enter the emerging blue ocean market of 100 billion yuan, which can increase the company's performance in the short term; the medium term layout of flexible OLED display modules will open up a new market space; and the R&D center projects and the supplementary working capital will lay the foundation for the company's long-term development.
layout of flexible OLED display modules trillion market is the biggest highlight of this additional issuance. New display screens based on flexible substrates and OLED technology are the best choice for the next generation of revolutionary display technologies. From the perspective of TFT-LCD replacement alone, the market will reach more than 100 billion US dollars. In addition, the expansion of application fields will face a trillion-dollar market. International giants such as Apple have shown great attention to flexible display technology. The company has reserved AMOLED's flexible key process technology. In the future, it will work with core customers to jointly develop and accelerate industrialization, break the current monopoly situation of South Korea over OLED panels, and quickly promote the popular consumption of OLED panels, with promising prospects. The three major platforms of
have been built and the growth path is clear. The company's three major platforms have been built, forming a layout of intelligent manufacturing (common manufacturing platform) + intelligent equipment (CNC machine tools + robots) + industrial interconnection platform (network industrial technology platform). The growth path of horizontal product expansion + vertical integration of the industrial chain has been clear. Under the company's growth framework, there are many areas that can be extended and coordinated. This additional issuance is based on a common manufacturing platform, which is just the beginning of the company's layout. In the future, the integration and extension of the industrial chain around intelligent manufacturing will be expected.
maintains the "strongly recommended-A" rating and raises the target price to 52.6 yuan. This additional issuance is just the beginning of the company's layout. In the future, the integration and extension of the industrial chain around intelligent manufacturing can be expected. It will help the company realize intelligent manufacturing and become the most comprehensive enterprise in the field of Industry 4.0. It is expected that the company will consider additional issuance of additional examinations and the EPS of the reserve examination will be 0.68/1.17/1.64 yuan in 2015-17, and maintain the "strongly recommended-A" rating. Taking into account the certainty of the company's growth and subsequent external extension expectations, it will be given a 45-fold PE in 2016 with a target price of 52.60 yuan.
Risk warning: The risk of failure of additional issuance, the development of new business does not meet expectations, and the investment of operators does not meet expectations.
Wuhan Fangu: 4G construction drives rapid growth in revenue performance, strengthens incentive mechanisms to ensure the long-term development of the company
Wuhan Fangu 002194
Research institution: Changjiang Securities Analyst: Hu Lu Date of writing: 2015-04-30
Report points.
event description.
Wuhan Fangu released its first quarter report for 2015. The report shows that the company achieved operating income of 434 million yuan in the first quarter of 2015, a year-on-year increase of 20.83%; achieved net profit attributable to shareholders of listed companies of 20.13 million yuan, a year-on-year increase of 9.73%; and achieved net profit attributable to shareholders of listed companies of 19.81 million yuan after deducting non-operating items, a year-on-year increase of 14.86%. The company's full dilution EPS in the first quarter of 2015 was RMB 0.04.In addition, the company expects to achieve a net profit attributable to shareholders of listed companies of RMB 36.5 million to RMB 52.14 million in the first half of 2015, a year-on-year decrease of 30% to RMB 0.
event comment.
Operating income maintained rapid growth, and performance achieved steady growth: The main reason for the company's operating income to maintain rapid growth is that the construction of 4G base stations of the three major operators continues to advance, driving the company's demand for RF devices to increase rapidly. The main reasons for the steady growth of net profit are: 1. The company's overall gross profit margin fell by 2.13 percentage points year-on-year; 2. The company's R&D expenditure and management staff salary increased by 6.96 million yuan year-on-year, and the decrease in profit income and exchange income led to an increase of 1.15 million yuan in financial expenses, resulting in an increase of 0.39 percentage points year-on-year.
4G construction maintains a high prosperity and supports the company's main business to continue to grow rapidly: We reiterate that China's 4G construction will continue to maintain a high prosperity in the next two years. The main logic is: 1. In April 2015, China Mobile launched the 2015 TD-LTE main equipment survey, design and procurement of a total of 400,000 base stations, which is significantly higher than the previous target of 300,000 base stations, indicating that it continues to increase its investment in 4G to ensure a leading 4G advantage; 2. Driven by competition, China Telecom and China Unicom both increased their capital expenditure in 2015, and their overall capital expenditure budget increased by 40.20% and 17.81% year-on-year respectively. It is expected that China Telecom and China Unicom will continue to increase the scale of 4G investment in the next two years. The construction of 4G by the three major operators will bring strong market demand to the company's RF devices. In April 2015, the company plans to establish subsidiaries in Sweden and the United States. It can be foreseeable that overseas markets will become the company's new revenue growth source.
employee shareholding enhancement incentive mechanism to ensure the long-term development of the company: In February 2015, the company issued a draft employee stock ownership plan. This plan sets priority shares and secondary shares at 1:1.27, amplifying employees' future benefits through leverage, and the company's major shareholders donated 36 million yuan free of charge to raise funds. It can be found that this plan has a strong incentive effect and has a positive effect on stabilizing the talent team and improving work efficiency. In addition, the company has accumulated technology in the fields of ground wave radar and robots, and an efficient incentive mechanism will help the company achieve new business expansion to ensure the company's long-term sustainable development.
Investment advice: We are optimistic about the company's long-term development prospects. We expect the company's comprehensive diluted EPS to be 0.32 yuan, 0.40 yuan and 0.49 yuan from 2015 to 2017, and reiterate our "recommended" rating of the company.
Shenglu Communication: Communications, Internet of Vehicles, Military Industry, Three horses are moving forward in unison
Shenglu Communication 002446
Research Institution: Zhongyuan Securities Analyst: Jia Jianhu Date of Writing: 2015-05-06
Report Key Elements: In the first quarter of 2015, the company's operating income increased by 160.07% year-on-year, and the net profit increased by 935.67% year-on-year. The company's performance growth benefited from the large-scale construction of 4G and external mergers and acquisitions domestic. The company's future development strategy is centered on the three major troops of communications, Internet of Vehicles and Military Industry. In the future, large-scale domestic 4G investment will continue until the first half of 2016, the Internet of Vehicles is expected to enter the fast lane and the synergy effect of acquiring military-industrial enterprises is emerging, the company's three major businesses are expected to achieve a head-on progress in the future. It is estimated that Shenglu Communications EPS will be 1.01 yuan and 1.39 yuan respectively in 2015 and 2016, and the PE corresponding to the latest closing price of 57.47 yuan will be 57 times and 41 times respectively, and the company will be given a "overweight" rating.
Event:
The company released its first quarter report for 2015, achieving operating income of 192 million yuan, a year-on-year increase of 160.07%, and net profit attributable to shareholders of listed companies of 21.3191 million yuan, a year-on-year increase of 935.67%, and EPS was 0.13 yuan. The distribution plan is to transfer 12 shares for every 10 shares, and pay a cash dividend of 0.10 yuan (including tax).
Comments:
The company's performance growth in 2014 and the first quarter of 2015 benefited from the recovery growth of the communications industry and external mergers and acquisitions. The company's main business of communication antennas and other related revenues have fluctuated greatly due to the industry's impact since 2010, and both revenue and net profit have declined to varying degrees. In 2014, it benefited from the recovery growth of domestic 4G construction, but the growth rate did not exceed expectations.
Extended acquisition of the Internet of Vehicles business has become the company's main source of profit. The company's Internet of Vehicles Company, Heposit Electronics, acquired by the company for 480 million yuan in August 2014, has become the main source of revenue and profit contribution of the company. It is estimated that Heposit Electronics + Civil Defense Fire Protection's contribution revenue in 2014 and the first quarter of 2015 was about 133 (civil Defense is only 21 million yuan) and 99 million yuan, respectively, accounting for 25.29% and 51.56% of the current revenue, respectively.Among them, Hepositron's net profit in 2014 was 51 million yuan, exceeding the performance commitment of RMB 48 million, and the net profit after the consolidated financial statements was RMB 29.87 million, accounting for 61.96% of the company's net profit attributable to the parent company in 2014.
The company's profit quality has also improved significantly compared with the previous period. On the one hand, the company's communications business marketing model has shifted to the operator model, and the company's communications business gross profit margin level is improved by improving the supply chain, improving technology and processes; on the other hand, the high gross profit margin of Hezheng Electronics has also improved the company's profit quality. In addition, the company's civil fire protection business revenue was RMB 20.76 million, an increase of 3037.31% over the past 2013. Although the growth rate is relatively fast, the revenue accounted for only 3.95%, which has limited impact on the company's overall performance.
In 2015 and 2016, the company's communications, Internet of Vehicles, and military industry businesses went hand in hand: domestic and global 4G network investment in the communications industry is still at its peak. In 2014, the fixed asset investment in the communications industry was 399.2 billion yuan, the highest investment point since 2009. Among them, China Mobile's 4G investment alone has invested 80.6 billion yuan, opened 720,000 4G base stations, covering 1 billion people, and developing more than 90 million 4G users. In 2015, the three major operators will vigorously carry out 4G investment. China Mobile, China Telecom and China Unicom (3G+4G) expect 4G investment of 722, 610, and 100 billion yuan, far exceeding the investment amount in 2014. The domestic 4G investment feast will continue until the first half of 2016.
There were 360 commercial LTE networks worldwide in 2014 and 497 million LTE users, an increase of 140% over 2013. It is estimated that by 2015, the global 4G user base will reach 800 million, and it will still maintain a growth of more than 60%. Global operator capital operating expenditures were US$220 billion in 2014 and will increase to US$241 billion in 2015. The company's communications industry revenue is expected to maintain steady growth in the future.
Company Hezheng Electronics' Internet of Vehicles Business is expected to enter the fast lane. With major traditional automobile companies around the world increasing their investment in the Internet of Vehicles business and in-depth participation of Internet giants such as Apple, Google, Alibaba, and Baidu, Silicon Valley in the United States has become a veritable automobile valley, and the global Internet of Vehicles is expected to enter the eve of explosive growth. In addition, BMW announced that it will standardize the interconnected driving system on every new car from June 2015, and the benchmark action of one of the three major luxury car brands will also drive the development of the entire Internet of Vehicles industry. According to the core assumptions of our special report on Internet of Vehicles, it is estimated that the penetration rate of Internet of Vehicles in my country will exceed 20% in 2017, and the Internet of Vehicles will reach 43.27 million vehicles. The overall market size of Internet of Vehicles in-vehicles will reach 147.124 billion yuan. The overall market size will reach 49.041 billion yuan. The overall market size will reach 196.165 billion yuan. It is expected to become the second largest mobile Internet entrance and the industry's growth prospects will be broad.
Hepositron, as a leading company in the domestic Internet of Vehicles, is also expected to share the feast of the Internet of Vehicles. Heposit currently mainly supports the front-loaded vehicle networking markets such as Dongfeng Nissan, Dongfeng Honda, and Guangzhou Honda. It is expected that shipments will double in 2015. Heposit will promise net profit of 6,000 or 75 million yuan in the next two years, which is expected to increase the company's EPS of 0.35 or 0.44 yuan.
layouts the military industry and is expected to become a new profit growth point in the future. On April 21, 2015, the company announced that it plans to acquire 100% of Nanjing Hengdian's equity for 750 million yuan. Nanjing Hengdian's products are used in microwave communications, radar and electronic confrontation equipment and other equipment, and have passed the military product quality system certification, the third-level confidentiality qualification certification of weapons and equipment research and production units, the on-site review of weapons and equipment scientific research and production licenses, and the qualification review of equipment undertaking units in the General Equipment Department. The net profit promised after deducting non-operating items from 2015 to 2017 was RMB 5,000, RMB 6,000 and RMB 72 million respectively. After the acquisition, it is expected to achieve a glorious doubled performance on the basis of the acquisition of Hezheng Electronics. In addition, in 2011, the company has laid out its military industry. The acquired Langsai Microwave has core devices, Beidou antennas, electronic countermeasures, remote sensing remote measurement, microwave communications, mobile communications, satellite communications and other products in phased array radar systems. Its revenue in 2014 was 10.9 million yuan, an increase of 48.91% from 7.32 million yuan in 2013. In the future, it will play a synergistic effect with Nanjing Hengdian, which will further consolidate and strengthen the company's competitiveness in the military industry. The acquisition is a private placement of 24.3626 million shares, with an issue price of 28.63 yuan (current price of 57.47 yuan), with a lock-in period of 3 years. Participants are the company's chairman, general manager of Hezheng Electronics and other personnel (the company's chairman previously increased his holdings of 3.55 million shares at a price of around 25.75 yuan on November 4, 2014).
Investment advice: It is expected that the company's communications business revenue will increase by 20% and 10% in 2015 and 2016, with net profits of RMB 18 and 200 million respectively; the Internet of Vehicles-related revenue will increase by 100% and 50% in 2015 and 2016, with net profits of RMB 102 and 153 million respectively; the military industry business contributed net profits of RMB 52 and 65 million in 2015 and 2016; it is expected that the EPS of Shenglu Communications in 2015 and 2016 will be RMB 1.01 and RMB 1.39 respectively, corresponding to the PE of the latest closing price of RMB 57.47 is 57 times and 41 times, and the company will be given a "overweight" rating.
Risk warning: 1. Nanjing Hengdian acquisition is uncertain; 2. Hezheng Electronics' performance does not meet expectations; 3. 4G investment is not as expected.
Century Dingli: The main business reverses, vocational education O2O focuses on
Century Dingli 300050
Research institution: CICC Securities Analysts: Wang Dapeng, Wu Chaoze Date Writing: 2015-04-24
Event
Company released its first quarter report: revenue was 144.656 million, a year-on-year increase of 53.2%, and net profit was 19.03 million, a year-on-year increase of 476%. The net profit from January to June is expected to be approximately 39.43-44.36 million, an increase of 140%-170% year-on-year. The non-recurring gains and losses are expected to be 5-10 million.
Company and its wholly-owned subsidiary Shanghai Zhixiang and Sichuan Changjiang Vocational College jointly established the "Changjiang Vocational College Dingli College" jointly established in Chengdu, marking that Century Dingli's strategy of "simultaneous development of dual main businesses of mobile communications and IT vocational education" established by Century Dingli through the acquisition of Zhixiang Information and entering the field of IT vocational education and establishing it is solidly advancing.
Comments
1. We learned that in the first quarter, Zhixiang contributed about 8 million net profit, and the main communications business had a net profit of 11 million yuan, an increase of about 230% year-on-year. Operators have increased their 4G network expenses, and at the same time, the main business control costs are effective, and gross profit margin continues to increase, which has significantly reversed performance. Maintain the forecast of 50% growth in the main communications business throughout the year, corresponding to a net profit of 65 million yuan.
2. Zhixiang currently accounts for a high proportion of revenue from model equipment. The fourth quarter is the peak of performance confirmation generally accounts for 50% of the annual performance, and the performance in the first quarter is in line with expectations. After the large-scale replication of the "Dingli Academy" model, it will bring more service and operation revenue and further increase the gross profit margin. It is a high probability that the annual performance bet is 58 million net profit.
3. The company's strategic direction is clear: Zhixiang's endogenous + external merger and acquisition, offline Dingli College + online education platform, creating a closed loop of "vocational education O2O"; the company's management style is stable and pragmatic, online and offline O2O is the latest trend in the development of vocational education. In the future, the company will accelerate external mergers and acquisitions, focusing on building an online education platform.
Performance forecast and investment advice
forecast EPS of 0.5, 0.67, 0.9 yuan in 2015-17. The company will accelerate external mergers and acquisitions, maintain a "buy" rating, and a target price of 45 yuan for 6 months.
Risk: slow layout of vocational education
Tongding Internet: occupy the traffic management entrance, build traffic, and then operate the business closed loop
Tongding Internet 002491
Research institution: Guolian Securities Analyst: Han Xingnan Date of writing: 2015-05-04
Acquisition of Ruiyi Information, opening the curtain of transformation.
Company acquired 51% of Ruiyi Information's equity in 2014 to kick off the curtain of transformation to the Internet, and then took stakes in Shanghai Zhizhen Network (Xiaoi Robot), Nanjing Anxun and Hangzhou Shuyun, laying out artificial intelligence and precision marketing. In 2014, the company cooperated with Huatai Zijin and Huatai Ruilin Fund to establish a TMT field merger and acquisition fund with 200 million yuan of its own funds. The recent promotion of employee stock ownership plans and the name of "Tongding Internet" fully demonstrates the company's determination to transform.
occupy the traffic management entrance, builds traffic through the traffic monetization platform and then closes the business business.
Traffic Palm Hall uses the traffic management function to obtain the user's traffic management entrance, and relies on it to build a traffic monetization platform to promote products for merchants to earn traffic for users. At the same time, it uses user's Internet behavior data and consumption and payment behavior data to provide merchants with precise marketing and advertising services, as well as financial institutions and other services. Its participation in Nanjing Anxun and Hangzhou Shuyun is to make reserves for providing precise marketing and credit reporting services. We believe that the company will actively make plans in the fields of precise marketing, data mining, credit reporting, mobile payment and mobile advertising in the future, and build a traffic monetization platform with a traffic monetization platform as the core.
fiber optic cable demand is stable, expanding the stable gross profit margin to optical rods
Benefiting from fiber entry and large-scale construction of 4G, fiber optic cables will maintain a high demand in 2014-16. However, the industry's overcapacity has caused downward pressure on fiber prices. The company's 3 million tons of optical rod production capacity will be put into production in 2015, significantly reducing costs and maintaining the gross profit margin.
gave the "strongly recommended" rating
2015-2017 EPS to 0.60, 0.67 and 0.77 yuan, corresponding to the current stock price PE of 38, 34 and 30 times, respectively. It is expected that the 15-16 diluted preparation EPS will be 0.66 and 0.76 yuan, corresponding to the current stock price PE of 34 and 30 times, respectively. The corresponding traffic monetization platform has a market space of 200-300 billion yuan, and an online shopping advertising promotion market size of 800 billion yuan. We believe that the combination of traffic backward operations and advertising promotion will generate a market of 10 billion yuan. The company has the advantages of operating resources and positioning. Even if the company only accounts for 5% of the share, the revenue will exceed 10 billion yuan. It will be given a 15-year 60 times PE, corresponding to a stock price of 39.6 yuan, and a "strongly recommended" rating.
Risk factors:
(1) Fiber price continues to decline sharply (2) Fiber cable demand declines (3) "Trade Palm Hall" cooperation with operators is blocked
