|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2017-02-23
|
16.67
|
25.20
|
211.73%
|
54.89
|
9.21% |
|
18.21
|
9.24% |
|
Tường tế
To acquire CDNetworks & CDN-Video in cash. Wangsu announced a major asset restructuring plan, under which it will acquire in cash97.82% of Korean CDN service provider CDNetwoks’ outstanding shares (or 84.9% ofCDNetworks’ total equity) and a 70% stake in CDN-Video. The acquisitionconsideration for CDNetworks/CDN-Video amounts to ~Rmb1.275bn/51.63m. As of 30Sept 2016, Wangsu had over Rmb5bn cash and cash equivalents. CDNetworks is a global CDN service provider. According to Wangsu’s announcement, CDNetworks was established in 2000 andmainly provides CDN services and DDoS protection services. It has the biggest marketshare among Korea’s CDN service providers and is ranked among the top three CDNservice providers in Japan. As of end-2016, the company had over 180 nodes globally,covering 98 cities in 49 countries and serving around 1,300 clients. CDN-Video is aRussian CDN service provider, with 30 nodes and 400 plus clients. In 2015,CDNetworks posted revenue of Rmb618m and net profit of Rmb23.43m. An important step towards globalization. We believe the acquisition, if approved, 1) will greatly enrich Wangsu’s overseas noderesources while helping the company set up more globalized operation and salesteams. It should also increase the company’s brand recognition overseas, facilitatingfaster and more effective overseas expansion; and 2) will enable both parties topromote their competitive products leveraging each other’s resources and channels. Forexample, CDNetworks’ global video conference system can be integrated intoWangsu’s product lines, while Wangsu’s live streaming service-related products can besold to Korean and Japanese clients. Valuation: maintain Buy rating. As the restructuring plan is still pending shareholders’ approval and approvals fromrelevant regulators, we leave our earnings estimates unchanged for now. We maintainour Buy rating and DCF-based price target of Rmb80.00 (WACC = 7.3%).
|
|
|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2016-12-19
|
53.52
|
26.93
|
233.18%
|
56.17
|
4.95% |
|
56.17
|
4.95% |
|
Tường tế
Acquiring Green Star Cloud and Eco-atlasWangsu announced it will acquire a 100% stake in Green Star Clound (GSC) and a30% stake in Eco-atlas for Rmb12.4m and Rmb9m, respectively. Upon completion, thiswill make GSC and Eco-atlas Wangsu's wholly-owned subsidiaries. In 9M16, GSC/Ecoatlasposted revenue of Rmb510k/1.20m, with losses of Rmb2.20m/1.78m. Acquisitionand consolidation of the two should have a limited impact on Wangsu, in our view, asit already holds a 70% stake in Eco-atlas. Cloud computing may become a new area into which Wangsu expandsNotably, GSC provides public, private and hybrid cloud solutions. Wangsu has thelargest CDN (content delivery network) in China, built on a cloud computing platform,leading to higher profit margin, as the platform improves internal bandwidth andefficiency of using node resources. After acquiring GSC, we believe Wangsu is likely tocapitalize on GSC's cloud computing capacity and provide more cloud computingservices to clients. In addition, with its large investment to build a cloud securitynetwork in 2016, we think cloud computing-related businesses are likely to becomeWangsu's new growth driver. One of the first to receive MIIT's CDN licenceRecently, Wangsu and Alibaba Cloud received CDN licences, becoming the first batchof Chinese companies to be granted such licences by the Ministry of Industry andInformation Technology (MIIT). MIIT regrouped the telecom sector at end-2015,clarifying businesses included in the CDN segment and separating CDN companies fromthe Internet data centre (IDC) segment. With CDN licences issued, companies applyingfor the business must get their internet access systems, information security systemsand registration & information management systems approved by regulators, which webelieve will lead to higher entry barriers. Valuation: Maintain BuyWe continue to be bullish on the growth of China's CDN sector and think Wangsu islikely to continue to benefit from it. We maintain our DCF-based price target ofRmb85.50 (7.4% WACC) and Buy rating.
|
|
|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2016-11-18
|
60.38
|
26.93
|
233.18%
|
61.78
|
2.32% |
|
61.78
|
2.32% |
|
Tường tế
Raising 2016/2017 net profit estimates 7%/4% We are increasing our 2016 and 2017 earnings forecasts 7% and 4%, respectively, andthe stock is being added to the UBS Key Call list. Although we have adjusted ourmargin forecasts downward because of higher depreciation charges, strong videostreaming sector demand has led us to increase or 2016 revenue growth forecast from60% to 70%, though we maintain our 55% growth forecast for 2017. We think themarket is underestimating this revenue growth and overstating competitive pressures. CDN service demand to grow fast and upside for Wangsu's market share We estimate the content delivery network (CDN) service market in China will grow at aCAGR of about 40% in 2015-17, driven by the popularity of internet service and newinternet applications like live video streaming. We believe Wangsu Science andTechnology’s (Wangsu) share in China’s overall CDN market was over 50% in H116and we expect it to continue to rise because Wangsu provides reliable, high qualityservices, while some of its rivals are still testing and adjusting their platforms. We expect gross profit margin to stabilise Wangsu adopted an aggressive pricing strategy in H116 to rapidly seize market share inlive video streaming, resulting in gross margin contraction. However, we expect grossmargin to stabilise in H216 and expand in 2017, because: 1) the present pricecompetition is not sustainable; and 2) pricing pressure should ease as Wangsu hasgained leadership in the live streaming market—80% of China’s streaming platformsare now Wangsu's clients, according to the company. Valuation: added to UBS Key Call list We maintain our Buy rating and price target of Rmb85.50 (we are raising our earningsforecasts, but the number of shares has also increased due to a private placement, soour price target does not change). We derive our price target using a DCF methodology(WACC of 7.4%). Our 2016/17 earnings estimates are now 2.5%/4.5% above Windconsensus. Wangsu is trading at 23x 12-month rolling forward PE, below -1 standarddeviation of the past three years' mean. We think the CDN market will continue togrow relatively quickly and we believe Wangsu can expand its market share andmaintain a healthy profit margin. We consider the current valuation attractive.
|
|
|
Âu phỉ quang
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-11-11
|
40.00
|
16.68
|
4.05%
|
40.50
|
1.25% |
|
40.50
|
1.25% |
|
Tường tế
O-Film to acquire Sony Electronics' factory in China for US$234m O-Film announced its plan to buy Sony Electronics Huanan (SEH) for US$234m. Theconsideration includes US$95/139m for equity/debt. Upon completion of the deal, OFilmwill invest US$32m more for operation of SEH's projects. Acquisition likely to substantially boost revenue growth when completed SEH is Sony (China)'s factory in Guangzhou and reported 2015 revenue of Rmb6.828bnand net profit of Rmb109m. Since O-Film's Q1-Q316 camera module revenue was closeto Rmb5.5bn, we estimate that after the acquisition is completed, the factory may bec25%/15% accretive to O-Film's revenue/net profit and could help double the size ofits camera module business. The acquisition is also likely to improve technology/management capabilities We believe dual-camera modules are likely to start becoming widely used in Chinesemadesmartphones in 2017. Considering Sony's advanced development and packagingtechnologies for camera modules, we believe the acquisition could help O-Filmstrengthen its capability to develop such products to further improve product mix andmarket share. O-Film is also likely to further improve its product quality and operationalmanagement capabilities through the acquisition. Valuation: Maintain Buy We maintain our DCF-based price target of Rmb42 (WACC 7.6%) and Buy rating.
|
|
|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2016-11-03
|
62.15
|
26.93
|
233.18%
|
61.86
|
-0.47% |
|
61.86
|
-0.47% |
|
Tường tế
Q316 revenue grew 50.6% YoY; net profit ex. one-offs grew 58.1% YoY In Q316, the company recorded revenue of Rmb1.166bn (up 50.6% YoY), net profitattributable to the parent of Rmb330m (up 40.1% YoY) and net profit ex. one-offs ofRmb310m (up 58.1% YoY). Non-recurring items was significantly impacted by changesin government subsidy, which was Rmb7.83m in Q316, compared to Rmb42.34m inQ315, mainly as the company had received most of the subsidy in H116. In Q1-Q316,the company's revenue/ net profit attributable to the parent/net profit ex. one-offsgrew 60.2%/64.2%/68.4% YoY, respectively. Gross margin dropped moderately, but operational efficiency further improved Gross margin came in at 41.7% in Q316, below 44.3% in Q315 and 43.6% in Q216.We believe this was mainly as the company adopted relatively aggressive pricingstrategy to actively obtain market share in 2016, especially in emerging areas such aslive broadcasting. The good thing is that the company's selling expense ratio furtherdropped to 5.5% in Q316, lower than 5.8% in Q216 and 6.9% in Q315. This indicatesthat the overall CDN market is still growing and the company's CDN services are stillquite competitive. We expect CDN service revenue to keep growing rapidly and GM to recover We expect Wangsu's CDN services to sustain rapid growth in the next two years: 1)demand for CDN will continue to grow, and we expect China's CDN market to sustainc40% CAGR in the next two years; 2) Wangsu possesses strong advantages in CDNnode coverage, leverage of large network traffic and operational experiences. We alsobelieve Wangsu's gross margin will gradually recover. We believe its price for livestreaming services is already low and price competition is unsustainable. Valuation: maintain Buy rating and price target of Rmb85.5 We expect Wangsu to sustain c50% revenue CAGR in the next two years. Currently,the market may be overly concerned about CDN sector's growth and competitionpressure from other CDN service providers, especially from cloud service providers. Wemaintain our Buy rating and derive our price target of Rmb85.5 based on the DCFmethodology (WACC 7.4%).
|
|
|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2016-11-02
|
62.60
|
26.93
|
233.18%
|
62.34
|
-0.42% |
|
62.34
|
-0.42% |
|
Tường tế
Industry competition stabilizing; prices gradually reaching a new balance Wangsu developed live-streaming CDN technology two years ago. Although its livestreamingCDN services were initially priced expensively, Wangsu has adjusted itspricing for such services this year in response to intensifying competition, aiming torapidly capture share in this space, particularly incremental demand. Currently, the livestreamingmarket's competitive landscape is starting to reach a new balance and, whileWangsu's pricing remains the highest, little room remains to continue cutting prices. Overall competitive advantages are still clear; still consolidating market share The company stated that, compared with other CDN vendors, Wangsu's advantagesmainly consist of the following: 1) The scale and stability of its platform, especiallywhen it comes to high-traffic events. 2) Prompt service, including rapid response tocustomer needs and effective solutions. 3) CDN service technology, accumulatedexperience and bespoke service. 4) As a third-party vendor, Wangsu does not haveissues with internal businesses that compete with its customers. Based on theseadvantages, we expect the company's market share to keep rising steadily, exceeding50% in 2016, despite fiercer competition. Steady progress for cloud security and overseas CDN projects 1) On the security front, particularly in terms of DDoS attack protection, the companypossesses good technology, related products and high-grade customers from thegovernment, financial and internet sectors. The company has also developed an antihackingproduct, for which it intends to step up marketing efforts for next year. 2) Itsoverseas CDN project is continuing to progress. The company estimates that its numberof overseas nodes will exceed 100 by end-2016 (end-2015: 60+). Meanwhile, it has setup subsidiaries in India, Ireland, the US and Malaysia to facilitate overseas businessdevelopment. Valuation: Maintain Buy rating and Rmb85.5 price target The market is fairly cautious on the overall CDN market and the company's potential tosustain rapid growth, whereas we expect the company's ~50% top-line CAGR toremain intact for the next two years. We maintain our Buy rating and DCF-derived pricetarget of Rmb85.5 (WACC 7.4%).
|
|
|
Lãng triều tín tức
|
Kế toán cơ hành nghiệp
|
2016-10-31
|
23.70
|
27.76
|
--
|
24.18
|
2.03% |
|
24.18
|
2.03% |
|
Tường tế
Q3 net profit grew 30% YoY 9M16 revenue and net profit were Rmb8.92bn and Rmb350m, respectively, up 29%and 13% YoY. This included Q3 revenue and net profit of Rmb3.08bn and Rmb90m,up 13% and 30% YoY. Earnings resumed relatively brisk YoY growth in Q3. Net margin dragged down by R&D spend Blended gross margin stayed low at 13.2% in Q3, down 0.1ppt from Q2. The weakgross margin was mainly due to high demand from internet customers, as most ofthese sales consist of lower-margin single and dual CPU servers. Q3 net margin was2.9%, down 0.7ppt QoQ, which we mainly attribute to high R&D spend during thequarter, which lifted the administrative expense ratio to 5.8% in Q3 from 5.1% in Q2. Plans to raise funds via rights issue Inspur plans to raise up to Rmb3.1bn through a rights issue. In addition to increasingworking capital and repaying bank loans, Inspur plans to use the proceeds to invest intwo projects a "Modularized Data Centre R&D and Commercialization Project" and "All-flash Storage Array R&D and Commercialization Project". The company is adomestic leader in whole-cabinet servers, with a market share of ~70%. Meanwhile,the company's sales of data storage products are also increasing quickly.Implementation of the projects to be funded by the proposed rights issue could furtherimprove the company's product coverage and market share and drive earnings growth;the company estimates that the aforementioned projects will, after beginningproduction, have annual capacity of 320 and 300 sets, adding Rmb100m and Rmb50mpa to Inspur's bottom line. Valuation: Maintain Buy rating. The stock is currently trading on 24x 2017E PE, 1 SD below the historical average (28x)and much lower than the industry average (46x). Our Rmb33.5 price target is based onDCF (WACC 6.6%) and is equivalent to 34x 2017E PE, lower than the industry averageand the company's historical average (38x). We maintain our Buy rating on Inspur.
|
|
|
Đại tộc kích quang
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-10-31
|
22.97
|
27.32
|
--
|
24.15
|
5.14% |
|
24.15
|
5.14% |
|
Tường tế
Q3 earnings disappointed, GM dragged by new products. 9M16 revenue was Rmb4.99bn, up 17.2% YoY; net profit (NP) was Rmb630m, up3.5% YoY. This included Q3 revenue of Rmb1.87bn, up 9.1% YoY, with NP ofRmb230m, down 21% YoY. Q3 NP undershot UBS-S/consensus estimates, which wemainly attribute to a gross margin (GM) decline during the Q3 high season. This year,GM was 38.9% in Q1, 41.2% in Q2 & 38.3% in Q3. However, quarterly GM peaked inQ3 in each of the four years since 2012. Management stated overall GM was draggedby recognition of low-margin sales of new products (eg, automatic testing lines) duringQ3; the new products were priced inexpensively to help build market share. Improving industry presence via M&A; stronger growth in high-powered lasers. Domestically, penetration of high-powered laser equipment lags far behind that of lowpoweredlasers. This year, the company acquired Setwin Industry Equipment andSpain's Aritex, aiming to leverage their accumulated technical know-how and customerresources to accelerate market development and seize market share from foreignbrands. Laser-cutting and welding products developed by Han's have launched and aregradually consolidating market share. Helped by recovering downstream demand, highpoweredlaser product revenue rose 38% YoY to Rmb680m in H116, along with astrong order backlog. We forecast revenue from high-powered products to grow 29%in 2016 (2014/2015: 21%/10%). Focusing on key technologies; robotics investments likely to boost earnings. In 2015, the company started building a presence in robotics and automation. Subsidiary Han's Motor has key technologies related to robot components. Thecompany has also: 1) set up robotics industry investment funds as platforms forinvesting in UAVs and firefighting robots; and 2) set up three subsidiaries focused onkey robotics technologies to conduct R&D into robotics sensor systems, harmonicreducers and laser sensors to complement its automation production offerings. Byimproving its R&D and production capabilities, we believe the company will havestronger bargaining power when it comes to automation system integration orders,ultimately driving stronger profitability. In the long run, these investments could createnew opportunities and growth potential for Han's. Valuation: Rmb29.0 price target; Buy rating. We base our price target on 26x 2017E PE. We are positive on the company's longterm(LT) growth in the automation segment.
|
|
|
Âu phỉ quang
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-09-12
|
35.50
|
16.68
|
4.05%
|
38.20
|
7.61% |
|
41.00
|
15.49% |
|
Tường tế
Growth driven by camera and fingerprint modules O-Film discussed its future growth drivers with investors at our China A-shareconference in Shenzhen. Compact camera module (CCM) revenue grew over 61% YoYand fingerprint module (FPM) revenue rose 133x YoY in H1, supporting net profitgrowth of over 30% YoY. In H2, we expect O-Film to further expand capacity inresponse to rising penetration of dual-camera and fingerprint modules in smartphones,which is likely to drive additional earnings growth. Gross margin to progressively improve Overall gross margin was around 13% in H1, including ~13% for CCM and ~9% forFPM. We foresee progressive improvement in CCM gross margin as dual-camerashipments ramp up; meanwhile, FPM prices are fairly stable, and gross margin is likelyto keep trending upward in this segment. Both factors are set to drive gradualimprovement in overall gross margin. Expanding in auto electronics segment O-Film recently completed the acquisition of a 70% stake in CETC Motor and a 48%interest in Nanjing Tianqing, further expanding its presence in the auto electronicssegment. CETC Motor holds an auto-industry supplier qualification and its customersinclude domestic auto brands such as BAIC. Though we expect a fairly limited earningscontribution from auto electronics this year, O-Film's net profit growth could acceleratefurther next year after the consolidation of CETC Motor. Valuation: Maintain Buy rating Our Rmb42.00price target is based on DCF and assumes a 7.6% WACC.
|
|
|
Âu phỉ quang
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-09-08
|
37.77
|
16.68
|
4.05%
|
38.20
|
1.14% |
|
41.00
|
8.55% |
|
Tường tế
Fingerprint and camera modules drove earning growth; maintain Buy. O-Film's better-than-expected H116 earnings support our view that increasing revenuefrom the camera and fingerprint module businesses will offset slowing demand forsmartphones. O-Film posted H116 net profit growth of 30.2% YoY, camera modulerevenue growth of 61%+ YoY, and fingerprint module revenue growth of 133x YoY. We believe the company may further increase its capacity, as demand for camera andfingerprint modules is likely to remain strong in H216. We are raising our 2016/17/18Eearnings 1%/14%/18% and lifting our PT to Rmb42.00. We maintain our Buy rating. Revising up estimates for camera/fingerprint module businesses. We estimate O-Film's fingerprint/camera module shipments surpassed 70m/120m unitsin H116, ahead of its major competitors. O-Film expects fingerprint/camera modulecapacity to expand nearly 50%/20% by end-2016, indicating its bullish view on furtherimprovement in smartphone fingerprint penetration and steady popularisation of dualcameras. We are raising our 2016-17E fingerprint/camera module revenue 0%/15%and 15%/21% to reflect brisk market demand. Auto electronics to steadily contribute to earnings. O-Film recently completed the acquisition of a 70% stake in CETC Motor and a 48%interest in Nanjing Tianqing. As an auto-industry supplier qualification holder, CETCMotor has a 700-strong team that can develop and manufacture auto electronics suchas intelligent instruments and central consoles. Currently, CETC Motor is a supplier forproprietary auto brands such as BAIC and SAIC. Based on our estimates, the price ofCETC Motor's auto electronics per vehicle could reach cRmb3,000, and such productscould have a relatively high gross margin. O-Film's net profit growth could acceleratefurther on the consolidation of CETC Motor. Valuation: Lifting PT to Rmb42.00. O-Film is trading on 26x 2017E PE, below its historical average (33x) and the peeraverage (30x). Our new DCF-based PT of Rmb42.00 (WACC=7.6%) implies 30x 2017EPE, still below its historical average but in line with the peer average. We believe themarket has priced in a sharp improvement of the fingerprint business in 2016 but notthe contribution from rising penetration of dual cameras to the company's earningsgrowth in 2017. We maintain our Buy rating.
|
|
|
Đại tộc kích quang
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-08-29
|
22.85
|
28.26
|
--
|
23.07
|
0.96% |
|
24.19
|
5.86% |
|
Tường tế
Q: How did the results compare vs. expectations? A: H1 revenue was Rmb3.12bn (+23% YoY), operating profit was Rmb410m (+47%YoY) and net profit was Rmb400m (+26% YoY), in line with preliminary results. Grossmargin was 3ppts higher, at 41%. Net profit growth trailed revenue and operatingprofit growth because: 1) the software VAT refund declined 17% YoY and governmentsubsidies fell 54% YoY; and 2) the income tax rate rose 1.6ppts YoY to 16.1%. Q: What were the most noteworthy areas in the results? A: Revenue from lower-power laser equipment was Rmb1.54bn in H1 (+16% YoY),44% of which came from laser marking equipment (+38% YoY). Lower-power laserequipment had a gross margin of 47% (+6ppts YoY). Helped by bulk sales, high-powerlaser/PCB equipment posted revenue of Rmb680/350m, up 38%/47% YoY, higherthan our 2016 growth estimates of 25%/18%. Q: Has the company's outlook/guidance changed? A: Orders rose YoY on growing demand for equipment in the consumer electronics andpower battery fields. Han's expects Q1-Q316 net profit to grow <20% YoY. Q: How would we expect investors to react? A: We see a positive response to faster-than-expected growth in high-power products.
|
|
|
Lãng triều tín tức
|
Kế toán cơ hành nghiệp
|
2016-08-24
|
24.97
|
27.76
|
--
|
26.87
|
7.61% |
|
27.78
|
11.25% |
|
Tường tế
Net profit lower than expected due to provision, but valuation still attractive H1revenue rose 40.3% YoY to Rmb5.84bn, in line with our estimate; Q2revenue wasRmb3.45bn, up 53% YoY. H1net profit was Rmb260m, up 8.3% YoY; Q2net profitfell 17.8% YoY to Rmb260m, lower than we expected. We attribute this to acRmb60m provision for receivables due from Venezolana de Industria Tecnológica inH1. Current valuation is low relative to the historical and industry averages. Wemaintain our Buy rating. Server business maintained fast growth in China The rapid revenue growth in H1was mainly attributable to the server business, whichposted 47% YoY growth in the Chinese market. The latest (Q1) Gartner ranking putInspur at the top in terms of server sales volume/value in China and in fifth placeworldwide. The company’s IT terminals and related parts posted no revenue in H1,mainly affected by the Venezuela business. The Venezuela business also contributed toa 35% YoY decline in Inspur's overseas business in H1. Lower revenue estimate for IT terminals and related parts Due to lower-than-expected sales of IT terminals and related parts in H1, we are cuttingour 2016E revenue in this segment to Rmb270m from Rmb690m. Because IT terminalsand related parts have a high gross margin (c27%), the decline in our revenue estimatefor the business leads us to cut our overall gross margin from 15.8% to 15.4%. On thewhole, we are lowering our 2016/17E net profit by 7%. Valuation: Maintain Buy rating Inspur is currently trading at 24x 2017E PE, lower than the historical mean -1x SD (28x)and much lower than the industry average (46x). Our new DCF-based price target ofRmb33.50(WACC of 6.8%) implies 32x 2017E PE, below the peer average and thecompany's historical average (38x). We maintain our Buy rating.
|
|
|
Bằng bác sĩ
|
Thông tín cập thông tín thiết bị
|
2016-08-23
|
21.42
|
21.98
|
187.70%
|
21.94
|
2.43% |
|
23.79
|
11.06% |
|
Tường tế
H116 revenue up YoY but profit margin narrowed. Dr.Peng reported H116 revenue of Rmb4.385bn, up 17.64% YoY. Net profitattributable to the parent declined 3.33% YoY. The YoY decline was due thecompany's gain of Rmb48.76m in H115 from transferring its stake in Shenzhen 95Investment. Excluding the gain, net profit attributable to the parent rose 9.43% YoY. Internet access revenue rose 15.22% YoY to Rmb3.726bn and data centre businessrevenue rose 41% YoY to Rmb594m. Internet subscribers rose more than we expected, driving revenue growth. As of end-H116, Dr.Peng's network covered 97.41m households in 189 cities. Thecompany had 11.83m subscribers (a net increase of 1.83m from end-2015), higherthan our estimate of c11m, which we believe was mainly because: 1) the companyrolled out several new promotional measures in H116 (eg, collaborating with localbroadcasting/TV companies to promote broadband by bundling broadband connectionservices and HD videos in a package); and 2) the company lowered its charges in someareas where competition was intense (eg, Shanghai). Decline in ARPU matched our estimate. In H116, due to intense competition in the broadband market, Dr.Peng's broadbandaccess business had a decline in average revenue per user (ARPU), which is nowcRmb45-50. Basically consistent with our estimate, the decline was small, mainlybecause: 1) the company's subscriber mix improved further, with subscribers of its50Mbps and above services contributing 55% of its subscriber base (vs. c45% inH115); and 2) the company rolled out several value-added content services through itsbroadband services, which offset the decrease in charges, to some extent. Valuation: Rmb22.50 price target; Buy rating. Our DCF-based PT of Rmb22.50 assumes 8.5% WACC.
|
|
|
Tam an quang điện
|
Điện tử nguyên khí kiện hành nghiệp
|
2016-08-05
|
12.10
|
19.87
|
--
|
12.33
|
1.90% |
|
13.55
|
11.98% |
|
Tường tế
GCS Holdings acquisition cancelled, but JV to be established. Sanan today announced it has scrapped plans for a US$226m acquisition of GCSHoldings due to failure to secure approval from the CFIUS (Committee on ForeignInvestment in the United States). However, it also revealed that Sanan and GCSHoldings have decided to set up a JV and will begin discussing the details immediately. We expect limited impact on development in compound semiconductors. Sanan entered the compound semiconductor industry in 2013 with the aid ofgovernment support, and it began the product certification process in H215. We expectthese products to begin adding to the company's top line in 2016 given decentmomentum. We believe the GCS Holdings acquisition was mainly intended as a meansto supplement Sanan's existing capabilities in design and production. As such, weexpect a fairly limited impact on Sanan's development in compound semiconductorsnow that the deal has been called off. Meanwhile, government support for compoundsemiconductors remains strong, and setting up a JV is also a viable way for the twoparties to leverage their respective strengths to jointly tackle this market. Acquisition not part of our base case. Given the numerous cases YTD of Chinese companies failing to complete overseasacquisitions (mainly due to not receiving government approvals), our existing earningsforecast does not assume a successful acquisition. In LED chips, we believe thecompany started benefitting from capacity reduction and price hikes by majorcompetitors in Q2, with LED segment revenue and gross margin likely to rise as a result. Valuation: Maintain Buy rating. Sanan is now trading at 12x 2017E PE, below its lowest historical forward PE of 14x. The current valuation does not price in the GCS Holdings acquisition, in our view. Wemaintain our Rmb21.1 price target (DCF, WACC=7.1%) and Buy rating.
|
|
|
Võng túc khoa kỹ
|
Thông tín cập thông tín thiết bị
|
2016-08-03
|
72.97
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26.93
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233.18%
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75.58
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3.58% |
|
75.58
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3.58% |
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Tường tế
H116 net profit up 82% YoY. Wangsu's H116 revenue rose 66.24% YoY, net profit attributable to shareholders rose81.78% YoY and net profit excluding one-offs rose 75.21% YoY. Actual net profitgrowth was close to the high end of the previously guided range, helped by the rapidgrowth of the high-gross-profit content delivery network (CDN) business. Internet applications (eg, videos) continued to drive rapid CDN revenue growth. In H116, Wangsu's revenue from the CDN business rose 76.04% YoY, which weattribute to: 1) rapid growth of overall internet traffic, especially the growth of livevideo-streaming traffic; and 2) the company's strong technical capabilities and goodservice quality. According to Wangsu's official website, 80% of live-streamingplatforms in China are clients of Wangsu's CDN services and live video-streaming trafficon Wangsu's CDN platform rose 180% YoY in May 2016. Short-term GM growth restricted by new projects; may pick up over long term. Wangsu's planned investments in community cloud, overseas CDN business and cloudsecurity are progressing steadily. Because the projects are still in the investment period,they weighed on the company's gross margin (GM) to a certain extent, resulting in asmaller blended GM in H116 than in H115 (43.6% vs. 44.1%). As the new businessescontinue to progress and improve their revenue contributions, we expect thecompany's GM to stabilise and pick up. Valuation: Maintain Buy and Rmb85.50 PT. We maintain our Buy rating and Rmb85.50 price target (DCF model, WACC 7.4%).
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