Chinese media hit 2.6 billion for the Internet gene, worth it?

June 24 Chinese media (600373, SH) announced that it intends to adopt the issuance of shares and payment of cash, spent 2.66 billion acquisition of "happy farm" developer Smartest Star 100% stake. In 2013, the net profit attributable to the parent company of Chi Mei Optoelectronics for 2013 was calculated at RMB76.5594 million. The corresponding PE of RMB26.6 billion was 34.97 times. Therefore, the industry questioned this valuation is too high. In response, Zhao Dongliang, chairman of the Chinese media, and Chow Ming-ting CEO, Tang Binsen, both said that because the Internet industry where Ching Ming Xingtong is located has the characteristics of light assets, it requires more dynamic evaluation to have more reference value.

Winning Tencent, Shenzhen Litong, which holds a 19.09% stake in Smart Star in this transaction, was "exceptionally conspicuous." After the transaction, Shenzhen Litong will receive a cash consideration of 152 million yuan and a consideration of 279 million yuan respectively.

Announcement shows that Shenzhen Litong was established on August 5, 2013, the registered capital of 500 million yuan, the legal representative of Wu light. Chen Fei, Zhu Jinsong, Hu Min and Li Huimin, four shareholders of Shenzhen Litong, respectively hold 25% of the shares. These four natural persons are all employees of subsidiaries of Tencent Holdings Co., Ltd.

Wisdom Star CEO Tang Binsen said that the most important asset of Wisdom Star is huge users. Announcement shows that Ching Ming Star to attract massive users, is to YAC security software as a starting point. YAC Security Software currently provides free system cleanup and antivirus software to overseas markets, with nearly 10 million monthly active users and maintaining an average monthly growth rate of 20%.

Gu Hao, an analyst at Analysys International, said that a security software monthly active users of nearly ten million is not a small figure, is also in the industry in the level. It is understood that YAC security software is in fact a wise celestial Star Alliance Tencent QQ computer housekeeper team to create out.

2.66 billion valuation is too high?

Announcement shows that this pre-assessment using the present value of the return method, the assessment of the benchmark date for March 31, 2014, the subject of the estimated assets of 2.66 billion yuan, net book value (unaudited) 9118.72 million yuan, value-added rate For 2817.08%. In 2013, Smart Star Unicom unaudited net profit attributable to parent company was approximately RMB76.5594 million, corresponding to a PE of 34.97 times.

As for the outsiders on the question of overvaluation, Zhang Jian, the executive general manager of CITIC Securities Investment Banking Commission, as financial advisor to the transaction said: "The valuations we see now are static data. The dynamic data can not be obtained due to regulatory requirements Disclosure, but through the dynamic valuation, then the price-earnings ratio is certainly not so high, "Chi Ming-satellite positioning is not a game business, but an Internet business and an international platform. For the gaming industry, the issue of price-earnings ratio, the Commission at the time of approval no longer pay too much attention, as long as the future growth is verifiable and predictable.

The announcement shows that in 2013, Cigarette Star accounted for 38%, 39%, 22% and 1% of the game research and development, game distribution, advertising and technical service revenue, respectively, which also made Tang Binsen different from traditional game companies Important evidence of reliance on a single game's R & D business or game agency business.

"Daily Economic News" reporter statistics found that although palm technology acquisition of crab science and technology and upstream assessment of the value-added rate of up to 28 times and 37 times, but the price-earnings ratio is only 14.57 times and 15.3 times; Zhejiang Daily acquisition of Shanda Network Shanda Winger and Shanghai Hao when the P / E ratio is only 22 times and 20 times.

Fixed-incremental institutions surplus surplus Liucheng

Yesterday, the Chinese media stocks a resumption of trading will limit the daily limit. However, in such a heavy positive good, the company intraday stock trading was once opened daily limit, a lot of money have sold, and finally the day turnover of up to 504 million. Data show that there are two organizations, including two seats jointly sold for sale of 200 million yuan, selling the top seat of CITIC Securities Beijing Avenue outside the business department redeemed 179500000 yuan a day, and buy the first five total only buy 140 million yuan.

"Daily Economic News" reporter noted that March 18, 2013, the Chinese media had Shanghai Pudong Science and Technology Investment, Anhui Xinhua Media and other seven investors non-public offering of 91,466,900 shares, issue price of 14.19 yuan / share, Raised funds to be used in Xinhua Cultural City project, the modern publishing port logistics project, environmental packaging and printing project, printing technology transformation project, Jiangxi Morning Post three-dimensional communication system project.

During the resumption of trading suspension, the restricted shares held by the seven specific targets just lifted the ban, the first trading day since the lifting of the ban yesterday. This time the Chinese media announced the acquisition of Smart Star, triggered a surge in stock prices, the seven investors profitable. After the restoration of the above seven investors holding the Chinese media cost price is only 7.71 yuan / share, according to the Chinese media yesterday's closing price of 12.83 yuan basis, there are already 66.4% floating profit.

Broadcast simultaneously

Wise Star join the Chinese media executives received 7.4 billion cash red envelopes

Li Qin by reporters

Chinese media 2.66 billion acquisition of "Happy Farm" developers, subject to this positive stimulus yesterday, a resumption of Chinese media stocks that a strong daily limit.

"Daily Economic News" reporter noted that the wisdom of Starcom 28 times this premium into the arms of the Chinese media can be described as earning pours. In addition, two of the three PEs participating in Wisestar have already paid off, with a total cash of 270 million yuan.

1 month ago to carry out equity incentives

According to the restructuring plan released yesterday by the Chinese media, the target value of the acquisition of the Target Smart Star is RMB2.66 billion, of which the Company intends to pay the consideration of RMB1.649 billion to Tang Yetsun, the shareholder of Smart Star, and pay a consideration of RMB1,101 million. Cash consideration accounted for 38% of the total transaction price.

"Daily Economic News" reporter noted that CMO Tang Binsen will receive 1,229 million shares of the Chinese media price consideration, but the most profitable is Xiaochang Feng Jie, Hyosung Musen two new companies was established in May of this year . Just one month after its establishment, the two companies have won a total of 740 million yuan of cash consideration. What are these two companies in the end?

Smart Starlink said that the two companies set up a platform for equity incentive and the two companies together hold a 59% stake in Smartstar. In other words, Smart Star Unicom 1 month prior to listing, the company took out 59% of the shares for equity incentives. So what are these employees?

Data show that Tang Binsen holds 36.52% stake in Xiaochang Feng Jie, Xie Xianlin and other 12 intellectual star executives hold 63.47% stake. The situation is similar to Xiaochang Musen, Tang Binsen holds 66.73% stake, Chi Ming Star Financial Chief Zhang Yan and other 27 people hold 33.26% stake.

This means that in the Chinese media acquisition of this asset, Ching Ming Star executives will receive 740 million yuan in cash by the two companies above the price, regardless of the future value of the stock price, Zhi Ming Xing Tong's owners have earned To pours too full.

Three PE cash of 270 million yuan

In addition, the "Daily Economic News" reporter noted that the two shares of the three celebrities participating in this channel of Smart Star Optoelectronics chose to sell its entire stake in Chi Mei Optoelectronics held in cash, the remaining one also cash 152 million yuan.

According to the reorganization plan, the entire equity held by Innovision Workshop will receive a cash consideration of 69.6613 million yuan from the Chinese media. In addition to the innovative workshop, Beimeihong also made a cash-on-cash option to sell all of its shares in cash to the Chinese media for a cash consideration of 48.2431 million yuan. In addition, Shenzhen Litong, the largest PE investor of Chi Mei Optoelectronics, also demanded a cash consideration of 152 million yuan (an additional consideration of 279 million shares).

Why Chi Ming Star shares of PE are so urgent cash? Chinese media said that PE institutions generally exit in cash. In addition, Shenzhen Litong, the largest PE holder of Chi Mei Optoelectronics, has chosen a way of converting shares and cash. Upon completion of the transaction, Shenzhen Litong will become a shareholder of Chinese media.