Monternet Group (002123) Semi-annual Report Commentary: Cloud Communication’s Beautiful Performance, Fuxin’s New Business Development Smoothly Highlights
Event: The company released its semi-annual report for 2019 and achieved revenue in 19H113.
200 million, a decrease of 14 per year.
76%, net profit attributable to mother 1.
24 ppm, an increase of 16 in ten years.
Among them, the Monternet technology revenue of the main business of cloud communication business9.
7.3 billion, an increase of 19% in ten years, net profit attributed to mothers1.
15 ppm, an increase of 50 in ten years.
Opinions: 1. The expansion of the traditional power business has led to transformation, and the cloud communication business has grown beautifully.
The decrease in overall revenue was mainly due to the successive replacement of assets related to the company’s power electronics business in the past three years.
19H1 power electronics business revenue 3.
510,000 yuan, down 3.
8.1 billion; and the Monternet technology of the military cloud communications business continued to grow rapidly, with revenue growth of 19% in 19H1 and net profit increase of 50%.
The growth rate of cloud communication business’s net profit is higher than that of revenue, and the scale effect has begun to appear.
2. Traditional information continues to increase the city’s share and cooperates with twilio to further open international channels.
1) The company’s traditional SMS service continues to grow from 70 in 2012.
5.8 billion pieces have grown to 72.3 billion pieces in 2018, with a compound annual growth rate of 47%, and the market share has also increased from 1 in 2012.
78% increased to 13% in 2018, the market share has steadily increased, and the company has become a domestic third-party SMS leader.
19 years of high growth, 19H1 corporate SMS continued to grow by 40%.
2) On August 13, the company announced that it had won the bid for “China Construction Bank Co., Ltd. 106980095533 Short MMS and Overseas Short Message Sending Service Project”, indicating the company’s landmark breakthrough in the financial field, highlighting the leading position of cloud communications to further increase market share.
3) On June 6, the company announced that it had reached a “Cooperation Agreement” with Global Cloud Communications Taptwilio, agreeing that the two parties would cooperate in international text messaging, voice Sip chat, IOT Internet of Things, video, instant chat, notification, Flex contact center, etc.It shows that the company officially opened the international channel and went global.
3. Fuxin’s development is smooth and large-scale application scenarios are expected to gradually land. It is worth looking forward to in the 5G era.
While the traditional information business continues to increase the city’s share, the company focuses on the new business of Fuxin in the 5G era, and builds a new information service ecosystem 深圳spa会所 around Fuxin +.
Fuxin is a new communication tool for the internal and external customers provided by Monternet for the 5G era based on mobile rich media communication technology and mobile phone numbers.
In the 5G era, the content of communication between enterprises and users will inevitably become more accurate and diversified. In this case, Fuxin, as a new carrier, will gradually integrate the operator’s communication capabilities, terminal interaction capabilities, and application link capabilities.Form a cross-network, cross-terminal, and cross-application communication between enterprises and users to achieve full platform rich media communication.
Monternet Fuxin’s new business continues to develop rapidly: 1) Fuxintong 1 was released in October 2018.
0 products; Fuxin 2 was released in February 2019.
0 products; 2) Announcement on June 27 with Guoxin Electronic National Ticket information length “strategic cooperation agreement”, landing the first large-scale application scenario; 3) August 9-11, Monternet was invited to participate in Huawei Developer Conference, Become an important member of Huawei terminal developer ecosystem.
4. Release a new round of equity incentives, and work together to advance Fuxin’s new business and strengthen the company’s confidence in growth.
On August 5, the company released the 2019 equity incentive plan. According to the previous round of distribution incentives, the scale of distribution granted in this round, and also set a higher exercise performance evaluation target: based on 2018 Monternet technology revenue18.
5.2 billion) as the base number, and the revenue share of the four phases from 2019 to 2022 shall not be less than 40%, 80%, 120%, 170%, or 25.
USD 4.0 billion, with a compound annual growth rate of more than 28%, exceeding the company’s revenue growth rate in 16-18 years (the annual compound growth rate of revenue in 16-18 years is 13).
6%).The implementation of the new equity incentive will further improve the company’s long-term incentive mechanism, fully mobilize the enthusiasm of the company’s directors, middle and senior management personnel and core backbones, and effectively promote the development of cloud communications leading business.
Profit forecast and investment advice: The company’s strategic development goal is to become China’s and even the world’s leading large-scale cloud communication platform. It has now become a domestic third-party enterprise SMS leader and its market share has increased year by year.
Facing the 5G era, the company has released rich media information products. In the future, it will build a new information service ecological model around “FuXin +”. FuXin is advancing smoothly, application scenarios continue to land, and it is becoming a mobile terminal manufacturer represented by Huawei.Ecological partners are expected to open up new growth space.
We are optimistic about the development space of rich media cloud communication business for a long time, and we expect the company’s net profit to be 4 in 2019-2020.
0 and 6.
100 million US dollars, considering the company’s smooth development of Fuxin, space segmentation, according to our calculations we believe that the company’s reasonable estimate in 2020 is not less than 30 times, the target price is raised from 15 yuan to 22 yuan.
Risk reminder: Fuxin’s development fails to meet expectations, corporate SMS market gross margin decreases risk, and operator policy risks