标题：Wangsu Science & Technology Comments on 2015 Annual Results：Emerging new growth drivers help to sustain fast growth
发布日期：2016-03-25 7:24:20
内容： Event: The Company announced 2015 operating revenue of Rmb2,931.7mn(+53.43% YoY) and net profit attributable to shareholders of the listedcompany of Rmb831.35mn (+71.87% YoY). Meanwhile, it expects1Q16 attributable net profit at Rmb183.42mn-222.72mn (+40%-70%YoY). The Company also plans to increase its capital contribution in itswholly-owned subsidiary in Hong Kong by Rmb535.89mn to facilitatedevelopment of its overseas CDN (content delivery network) projects. Comments: The Company’s CDN business benefits from sector growth and arise in the Company’s market share.The overseas CDN business will be a new source of growth for itscore business. Community cloud, private cloud, security, and traffic monetizationcould emerge as the Company’s new growth drivers The stock option scheme binds interests of the new executives and backbone employees to theCompany’s growth prospects and bodes well for its expansion in the new business territories. Potential risks: Slow progress of the overseas/community cloud construction; disappointing revenuefrom traffic monetization, and vicious competition in the CDN space. BUY reiterated. Over years, the Company continuously consolidated its leading position by improvingstrengths in the technology, services and costs. Propelled by new growth drivers in overseas CDN,private cloud and community cloud businesses, the company is expanding from the Rmb100bn-worthCDN market to the vast cloud computing field. Considering growth momentum of its CDN, cloudcomputing and traffic monetization businesses, we expect its turnover/capitalization to exceedRmb10bn/Rmb100bn over the long term. But considering the augmented expansion cost during the earlystages of new business, we cut estimates of the Companyˇs 2016-17E EPS to Rmb1.63/2.38 fromRmb1.74/2.73, and project its 2018E EPS at Rmb3.34. Our latest TP for the Company is Rmb73.35,implying 45x 2016E PE. BUY reiterated.
发布日期：2016-03-25 7:24:20
内容： Event: The Company announced 2015 operating revenue of Rmb2,931.7mn(+53.43% YoY) and net profit attributable to shareholders of the listedcompany of Rmb831.35mn (+71.87% YoY). Meanwhile, it expects1Q16 attributable net profit at Rmb183.42mn-222.72mn (+40%-70%YoY). The Company also plans to increase its capital contribution in itswholly-owned subsidiary in Hong Kong by Rmb535.89mn to facilitatedevelopment of its overseas CDN (content delivery network) projects. Comments: The Company’s CDN business benefits from sector growth and arise in the Company’s market share.The overseas CDN business will be a new source of growth for itscore business. Community cloud, private cloud, security, and traffic monetizationcould emerge as the Company’s new growth drivers The stock option scheme binds interests of the new executives and backbone employees to theCompany’s growth prospects and bodes well for its expansion in the new business territories. Potential risks: Slow progress of the overseas/community cloud construction; disappointing revenuefrom traffic monetization, and vicious competition in the CDN space. BUY reiterated. Over years, the Company continuously consolidated its leading position by improvingstrengths in the technology, services and costs. Propelled by new growth drivers in overseas CDN,private cloud and community cloud businesses, the company is expanding from the Rmb100bn-worthCDN market to the vast cloud computing field. Considering growth momentum of its CDN, cloudcomputing and traffic monetization businesses, we expect its turnover/capitalization to exceedRmb10bn/Rmb100bn over the long term. But considering the augmented expansion cost during the earlystages of new business, we cut estimates of the Companyˇs 2016-17E EPS to Rmb1.63/2.38 fromRmb1.74/2.73, and project its 2018E EPS at Rmb3.34. Our latest TP for the Company is Rmb73.35,implying 45x 2016E PE. BUY reiterated.
