Technology breakthrough will detonate mobile Internet concept 6 shares ushered in gold-like opportunity

"Mobile internet is really a very big impact, and many people think it is a subversive role for industry." But it is not without regularity, I still see a lot of things similar to the early days of PC Internet. "March 31, the theme of" It innovation to promote human progress, "the 2013 China It leaders summit held in Shenzhen. Baidu founder Robin Li said at the meeting that today's mobile search is much like the 99 PC search, where users are very tolerant of technical backwardness, which is where the opportunity lies.

"99 years, everyone in the search box to lose a keyword, wait a few seconds before the results come out, and many times the result is not what they want." Today mobile internet is also very similar, the average search time for mobile search is 2.4 seconds, similar to 99 years, and today's PC search, if the result is not a second, you must think that the network is broken. Now on the mobile phone every day there are hundreds of millions of people in search, everyone on the technology behind the tolerance is very very strong, this is the early days of any industry are facing problems or all the laws. And once we have solved these problems, the industry will be magnified several times, more than 10 times times, or even dozens of times times. "said Li.

Earlier, some people had doubts, Baidu in the mobile internet era has missed the opportunity? But since the second half of 2012, Baidu's rapid force on the mobile internet has let people find that this is not the case. In fact, Baidu is working to solve the problem of technology backwardness faced by mobile Internet in the early years, while in the field of voice and image processing technology has been harvested.

To Baidu voice assistant for example, although started later than other products in the industry, but is now in a relatively advanced position. Data show that in terms of speech recognition accuracy, the past year has progressed more than 15 years of progress in the sum, in Li's view, it is the previous long-term technology accumulation so that Baidu voice products to thick thin hair. Similarly, when the image recognition technology applied to the whole web search, Baidu to map the accuracy rate has been upgraded from 20% to 80%, Baidu also on-line the first full web of face search products.

At the 2012 Baidu annual meeting, Li said: "Technological innovation is always the core driving force in this industry." Technology accumulation of first-send input, often reflected in the product from behind. ”

In fact, the rise of Baidu's voice and image products, is to benefit from the deeplearning field of technological breakthroughs, Baidu voice assistant "Voice command, voice search, voice question and answer" functions, it is through the depth of neural network technology to achieve. In the view of Baidu, we learn some concepts and methods of cognition, and explore the unique method of similarity measurement to find the similarity and correlation of images.

2013 Baidu History of the first research institute will be established, "This institute will focus on Deeplearning, is the depth of learning technology, so we call this academy instituteofdeeplearning, referred to as IDL." We will attract the world's leading experts in the field to join, for our New Year's products and business development to provide the most solid foundation! "said Li.

Whether it is the theme of this summit, "It innovation pushes human progress", or like Evernote, Airbnb, Pinterest, SurveyMonkey, Spotify, Box, Twitter, Dropbox ... The new generation of Silicon Valley Internet stars joining the 1 billion-dollar club show us that the internet is once again a fascinating attraction as new and revolutionary technologies emerge.

In Li's eyes, the mobile internet is both a shock and an opportunity for Baidu and the industry as a whole, "We've been on the internet for more than 10 years, but it's still very exciting when the mobile Internet arrives, there are so many possibilities, so many places to ascend." "And this, undoubtedly, is the most desirable place."

At this summit, Alibaba Group Chairman Jack Ma high-profile "retirement", announced to achieve "to do their" dream. "Robin Li is lucky compared to Ma Yun," says Luo, a prominent internet commentator. Ma Yun retired, only "finally can be himself." And Robin Li has been "a self". He once revealed to the outside world that it is a typical technical man and an IT otaku. Hobby is surfing the internet. Robin Li is now in a state of "life is Work". It is a blessing to combine one's hobbies, career, work and life together. (Oriental Morning Post (blog, Weibo))

Farming more than three years of E-commerce to achieve tens of billions of sales

Another traditional retailer to fully enter E-commerce.

March 28, reporters from Shanghai, the second supermarket farming supermarket (Group) Co., Ltd. (hereinafter referred to as farming) the 20 anniversary ceremony was informed that, this year, farming in the development of physical stores at the same time, focusing on the implementation of "focus on the electric business strategy", and strive to build three years across the Yangtze River, Zhejiang, Shanghai, a large city of the electric business platform, annual sales of 10 billion yuan.

Farming related responsible person, last year farming supermarket has been testing hydro business, the recent major expansion of Shanghai business. 2013, the group will build line under the combination of the new model of the electric business, and strive to from the chain of vicious competition in the "encirclement".

"The biggest advantage of farming is that it can use the original enterprise network, logistics, goods, brands and other resources to carry out new value-added services, the overall cost is lower." "The official said, compared with other electric dealers, its characteristics are" regardless of the weight of goods, as long as the online or telephone purchase of best-selling goods over 50 yuan can be free to enjoy the outer ring within two hours of home delivery services. (Oriental Morning Post)

The height of influence, growth, digestion and high valuation

Daily 603000

Research institute: Guo Hai Securities (000750, shares bar) analyst: Ma Ginliang Date: 2013-03-20

Core points: Resource endowment + Flow promotion + Synergy value 1, policy background and media gene can not reproduce the right of news editing and the depth of planning ability; 2, the market-oriented operation of the gradual increase in the flow of import capacity and high-end audience influence. 3. On the basis of core resources, the synergy effect of home page and Sub section, Main edition and local plate, and the channel, customer expanding ability and value realizable ability. 4, the company is expected to increase the performance of the next 2 years more than 50%, sustained high-speed growth so that its investment value is increasingly significant.

Advertising and Promotional services: editing rights + traffic Promotion + advertising volume Price Qi 1, Industry trends: Integrated portal advertising share decline, the Internet entrance properties disappear, pure competition breadth and timeliness has become the past, vertical information depth achievements new favorite, network news video becomes a trend; 2, Company Highlights: Advertising business around the right to news and editing and thematic planning ability to carry out in-depth management, sub-section, local version of the huge potential; external media flow import will play a significant role in the 2013; video patches, interactive marketing ads will become the company's important advertising form of innovation, advertising sales team ability to upgrade, the main edition, Local editions can contribute to the incremental space of advertisers. Based on the future macroeconomic situation and the optimism of the internet advertising boom, the next 2 years, the company's advertising revenue compound growth conservatively estimated at more than 25%.

Information Services: Public opinion monitoring will be the outbreak point 1, industry trends: public opinion monitoring market scale of more than billion, vast space, many service agencies, the leader has not yet formed; 2, Company highlights: "Expert" public opinion of the team of public opinion information to interpret the ability to constitute its core competitiveness, corporate background, the common context of the company in the acquisition of government, large state-owned enterprises customers have the convenience and advantage; Opinion magazine subscriptions are expected to grow by more than 50% a year, the public opinion database Public opinion report benefits the increase of the demand for government and enterprises; Overall, the central Network group construction and information services revenue is expected to stabilize in 700.08 billion yuan/year, the commercial website copyright Information Services Revenue will maintain 20%-30% of annual growth; Public opinion monitoring service will become the fastest growing area, It is expected that the next 2 years to maintain more than 50% growth, business development period after the gross margin has a greater room for improvement.

Mobile Value-added services: long-term layout of mobile Internet, short-term operator platform still has huge potential to tap space 1, Industry trends: Smart phone blowout LED user growth, mobile Internet into a high-speed growth period; App changes mobile internet ecology, mobile payment bottleneck breakthrough after the business model barrier will be broken; operator-led mobile value-added platform with huge user size and mature payment means, will still be the most profitable platform in the expected time. 2, the company highlights: Business and operator platform full docking, and downstream of the division of CP model is clearly mature; mobile video, mobile phone reading, mobile gaming is expected to achieve an outbreak of growth, mobile province, telecommunications, Unicom market incremental space is huge; the company's layout on the mobile application side is expected to make its long-term revenue mobile Internet development. Mobile value-added services composite growth in the next 2 years is expected to maintain more than 80%.

Valuation Analysis: The target price of 47.2 yuan, buy rating we expect the daily (603000, Stock bar) EPS for 2012-2014 respectively 0.78, 1.18, 1.72 yuan, corresponding to the current stock price of PE 48.6, 31.9, 22 times times, Consider the impact of the company's irreplaceable core resource endowments + the platform value increase expected by the flow enhancement + clearly visible value of the business model, which can give the company a higher than the industry average level of valuation. From the company's scarce attributes, growth attributes, we give its target price of 47.2 yuan, considering its high growth will gradually digest the existing valuation, give the buy rating.

Shun Network technology: Based on the Internet Café Channel, Seek beyond

Shun Net technology 300113

Research institute: Hua Chuang Securities Analyst: Yang Renwen Date: 2013-03-26

Matters

The company released 2012 years, to achieve income of 274 million yuan, an increase of 58.6%, the realization of the ownership of the parent company's net profit of 92 million yuan, an increase of 44.7%, the company proposed every 10 shares are now 2.5 yuan (including tax). The company also forecast 2013q1 performance growth range of 5%-15%.

Main points

First, the company's 2013q1 performance growth is flat, seasonal reasons for the annual performance growth forecast can be reference value in general. A considerable number of Internet cafes in the country are located near the school and outside the migrant workers, school holidays and migrant workers home for the New year, leading to Internet cafes users will be significantly reduced than usual, so the 1 quarter generally for the industry off-season, coupled with the 1 quarter net profit scale is small, performance growth is easy to fluctuate, to the annual performance growth forecast can be reference value and impact of small While Q2, Q3, Q4 are relatively high for the whole year, and the performance distribution is more uniform.

Second, the company through the release of series of products to improve the user experience, in the Internet Café industry's competitive advantage is constantly strengthening, and constantly open up the gap with competitors. The company's core products "network-dimensional Master", "Cloud Platform" terminal installation of more than 5.5 million and 300,000 respectively; Vientiane Network Management "active terminal number 4 million, accounting system market share 30%."

Third, the company's current performance drive advocates if the network advertising (network advertising and extension services), game Transport (User Center system), as well as traffic sales (Internet value-added services). It is expected that the future of the game in the company to increase resource tilt and industry boom will maintain a high rate of growth, while network advertising, traffic sales in the channel share of the trend will also maintain rapid growth.

Four, the company's business is gradually from the Internet cafes and upstream customers of the "Software + channel" model to the direct user-oriented "platform + services" of the Internet model, the profit model gradually from "advertising" to "Advertising + pay" transformation, while actively targeting the mobile internet to bring new opportunities.

Five, we forecast the company 2013-2015 EPS is 1.01 yuan, 1.48 yuan, 1.84 yuan, the current stock price corresponding to the 2013-2015 PE 29 times times, 20 times times, 16 times times, taking into account the company gradually get rid of the Internet café channel decline brings adverse effects, Gradually from the Internet cafes and upstream customers, "Software + channel" mode to the direct user-oriented "platform + services" of the network model changes, the future growth of space in the continuous restructuring and upgrading, we give the company 2013 35 times times Reasonable PE, the corresponding target price of 35 yuan, for the first time to give "recommended" investment rating. Company follow-up Price Catalyst: New acquisition target landing, new products, business monetization process more than expected.

Risk hint: KUT Science and technology follow-up integration and operation disadvantage, internet café channel attenuation speed exceed the expectation, new product business commercialization, monetization process is lower than expected.

A brief comment on north latitude communication: Successful agent "Big Masters"

North latitude Communication 002148

Research institute: CITIC Investment Securities analyst: Dai Chunrong, Xu Xianzi Date: 2013-02-06

Mobile Games Drive Mobile Internet development, high returns accompanied by high risk.

As a combination of the traditional communication industry and the new information application, mobile Internet has developed rapidly. Smart phones and other terminals of large-scale applications to lay the foundation of mobile internet applications, 2012 years ago the 3 quarter of global smartphone shipments 467 million, an increase of 45%; In particular, China 2012 1 ~ November smartphone shipments increased by more than 170%. The number of domestic mobile internet users also continued to grow rapidly, to the 3rd quarter of 2012, the number of mobile internet users reached 490 million households, an increase of 22.5%. The market widely believes that mobile internet than the traditional Internet development space is broader, and mobile games is mobile internet is the first to determine the profit model of the industry.

It is worth watching from the mobile phone online download, recharge charges, to the game, users can be applied software platform or Alipay, such as network solutions, so that the company's profit "Around" the operator (only charge traffic charges), the real opening of the market "revolving door." Content producers, operations and channels can benefit from the industry chain. and mobile games similar to the film, is a small cost of project production, if the market can get a good response to a large profit (more than tens of millions of months of income), which prompted most of the company to do page games on the PC to the mobile phone online transformation.

From 2012 to date, the mobile gaming market, mainly iOS and Android two operating platforms. Among them, iOS belongs to the closed market, with Apple's App Store lock, the mobile games proceeds to 5% bad debts by the content quotient and Apple split; Android is an open market, with participants including content providers, operators, and channel operators, and the benefits of mobile gaming are divided into three-party proportions. Among them, north latitude communication (002148, shares bar) is a game operator, is "Big Master" in the Android platform operations agent. Channel Business has UC, 360, 91, Android, when music and other participation, the first 10 mainstream platform share accounted for more than 70% of the total market. The company is trying to develop its own mobile online games, so that content providers to share the proceeds of their own hands. But this way of sharing is also gradually changing, this year, the channel merchants began to sell advertising in the way of profit, after the industry's profit model may be further changes.

Mobile games is a high return with high risk of the industry, the current 95% of the palm of the project loss, only 5% of the game team products ranked by the former few, the success of mobile games full of uncertainty.

365 Net Annual Report comments: Performance in line with expectations, look forward to a smooth expansion

365 Web 300295

Research Institute: Wanguo Securities Analyst: Wan Jianjun Date: 2013-03-06

Performance is in line with the market and our expectations. 12, the company realized operating income of 299 million yuan, operating costs 17 million yuan, year-on-year growth of 30.1%, 32.8%, the realization of attributable to the listed company shareholders of the net profit of 101 million yuan, corresponding to the overall diluted EPS1.90 yuan, an increase of 40%, In line with the market and we expect (company performance letters are expected to increase 40%). In the fourth quarter, the company realized operating income of 84 million yuan, attributable to the shareholders of the listed company net profit of 26 million yuan, year-on-year growth of 33.7% and 75.4% respectively. The company plans to distribute a cash dividend of 10 yuan per 10 shares (including tax), at the same time the company issued 13 Year 1 quarterly results forecast, is expected to belong to the listed company shareholders of the net profit growth -15%-15%.

Gross margin is basically stable, business expansion under the pressure of the cost rate has increased. The company's overall gross profit margin of 94.2%, down 0.1% year-on-year, basically to maintain stability. Sales cost rate and management cost rate increased 2.7% to 32.5% and 21.4% year-on-year, mainly due to the reporting period, the company added XI ' An, Chongqing, Shenyang three sites resulting in a large increase in labor costs. As the above three sites in the short term can not have a larger income contribution and the related personnel's expenditure needs to be rigid to pay, will have the 13 company's performance to have the big pressure, the company forecast 13 Q1 net profit year-on-year growth -15%-15%, is below the 12 whole year growth to prove this point.

Online marketing services continue to maintain a high growth rate. The company's online business income of 294 million yuan (accounting for 98.3%), an increase of 31.1%, continue to maintain a rapid growth trend, the future with the new site gradually enter the income contribution period, the company online business income is expected to continue to maintain a high growth rate. Gross margin is basically stable, down 0.29% to 94.7% year-on-year.

Maintain the profit forecast, look forward to the smooth progress of the expansion, the first to give "overweight" rating. We maintain a profit forecast, the company is expected to fully diluted EPS 13/14 years respectively 2.38/3.00 yuan, the current share price corresponding to 21/17 times times PE valuation, lower than a share of the Internet average valuation level. We look forward to the smooth expansion of the company, the first to give "overweight" rating.

Sea Rainbow Holdings (000503, shares bar): Gaozhou "Rebate Door" or the interpretation of the butterfly effect, the national drug collection and production model reform imminent, sea rainbow full business operation can be

Hai Hong Holding 000503

Research Institute: Founder Securities (601901, stock) Analyst: Sheng Date: 2013-03-26

We reaffirm our firm optimism that the company is the most valuable inflection point for investment in the two growth sectors spanning medicine and TMT in 2013. In view of the widespread concern about the confirmation of the company's charging pattern, we refer to the new trend of domestic drug procurement reform and advise investors to pay close attention to the company's contract with Shanghai Municipal Medical Insurance Bureau. 2012-2014 EPS is expected to be 0.03, 034 and 0.68 Yuan, 2013 years 45 times times PE calculation, a reasonable value of 15.3 yuan, to give the company "overweight" rating.

Music Network: Performance in line with expectations; Video advertising revenue rises sharply

Le video Network 300104

Research institute: Goldman Sachs GAO Securities analyst: Liao, Liu Zhijing Date: 2013-03-11

Inconsistencies with predictions

Le video Network (300104, shares) published the 2012 annual report and convened an investor meeting. The company's annual income growth of 95%, net profit growth of 48%, in line with the company's performance forecast 45-55% range. Earnings rose 40% Year-on-year, with net profits up 38% per cent year-on-year, a slowdown from the previous 9-month income/net profit growth 133%/53%, largely due to the high cardinality effect of the same period last year.

(1) The rapid growth of video advertising business is the main factor driving the rapid growth of corporate income. Annual advertising revenue surged 268% to 419 million yuan, of which four-quarter advertising revenue of about 150 million yuan, two consecutive quarterly single quarter billion and the annual income accounted for the ratio of 36% (2011 accounted for 19%), It reflects the rich content resources of the video network and the continuous improvement of the brand strength for quality advertisers. (2) Non-advertising revenue, content distribution income growth of 56% to 555 million yuan, the growth rate than the 2011 572% significantly lower, meaning that the company's reliance on content distribution is declining. Ultra-clean machine business income growth of 470% to 38 million yuan, reflecting the company's Internet television layout has been significantly effective. (3) 2012 gross profit margin of 41.4%, down 12.7%, mainly because of bandwidth costs and content costs increased significantly (year-on-year growth of 204% and 154%). However, we also note that the four-quarter bandwidth cost has fallen by 48% (up 536% in the first 9 months of 2012), indicating that bandwidth cost pressures will likely ease after 2013.

Investment impact

The network plans to launch the "video TV Super TV" in the three quarter of 2013 to take full advantage of its content advantage and its pioneer advantage in the Internet TV field. We fine-tuned the 2013-15 earnings forecasts to 3% to 8% to reflect changes in revenue growth forecasts for various businesses. Therefore, we will increase the 12-month target price based on peg by 9% to Rmb 23.33 yuan. Maintain neutral rating unchanged. Main risk: Advertising and Internet TV revenues exceed/lower than expected.