NavInfo: Acquisition of the Netherlands Mapscape Company extended industry chain

Acquisition extension industry chain: It is understood that the Netherlands Mapscape Company has a wealth of navigation system software development and maintenance experience, is the European next generation of standard format for navigation data NDS organization's main members and related technology research and development, through the acquisition of the company extended the industry chain, Transform from a simple diagram to a software solution provider.　　At the same time, we think that the company has no plans to enter overseas markets. Acquisitions help to enter the European and American high-end models market: The current company load market customers to the Japanese model mainly, while the main competitor of the software is mainly in Europe and the United States, the 2010 company and the Alpha faction (in North America for many years before loading the market ranked first) signed a cooperation agreement, Intended to strengthen the European and American models of navigation map sales.　　Mapscape Company's main customers include Audi, BMW, Volkswagen and other global top automobile manufacturers, through this acquisition, help the company to enter the European and American high-end models market. New software industry policy measures to the development of the company: 12th State Council Executive meeting identified six major measures to further encourage the development of software industry and integrated circuit industry.　　"(iii) the continued implementation of the software products of the value-added tax preferential policies" for the company constitutes a substantial positive (07-09 year company value-added tax rebate accounted for about 20% of the net profit); At present, the navigation electronic map industry piracy, infringement phenomenon is serious, hinder the healthy development of the industry, damage the interests of the "(v) strict implementation of software and integrated circuit intellectual property rights protection system, to combat all types of tort." "helps reduce piracy in the navigation and electronic map industry." "(a) to encourage and support enterprises to reorganize mergers and acquisitions and strengthen the integration of industrial resources."　　As the "national team" and the absolute leader of the navigation electronic map industry, the company has the possibility of integrating the enterprises in the industry.　　Maintain the company's recommended investment rating we raise the company 2010-2012eps to 0.58 Yuan, 0.97 yuan and 1.28 yuan, the next 6-12 months target price of 52 yuan, to maintain the company's recommended investment rating. Risk tip: The main competitor of the software development of high expectations, extrusion companies in the former loading market and GPS mobile phone market space.