Net qin privatization? Is capital ambitions of wishful thinking


(wen xuan/day)

most recent years has been a wave of qin seems to be ushered in the new turning point, yesterday the company received a non-binding offer privatisation, buffalo capital in two ways, one is promised privatisation acquisition and delisting, 2 it is refused, adhere to the status of listed companies. Qin did not say, now it’s only a token says will assess.

look at buffalo capital under the proposed conditions: according to the American depositary receipts of $9.8 per share in cash, a network of the qin dynasty the previous day’s closing price of 6.90 42% premium, valued at $472 million. The first look, the condition is very good, is not only the more recent share price have a big premium space, is also a risk in the net of the qin dynasty crisis dare to flange.

perhaps in many people’s opinion, qin troubled, annual report during childbirth, alarm has not been lifted, so the investors to raise acquisition, qin sure privatisation, but this is just the representation and simplify the question. In fact, in cloud network jun, hunting nets qin is unlikely to accept the offer privatization, cause analysis is as follows:

a, for the company valuation judgment

before talk about the content, take a look at the first time buyer buffalo capital is how to consider? This year, director of the company’s founder is red children Xu Peixin may also invest in torrents of qin’s business. When he found the net qin financial status, business development is very good, the client users is very big, but the current share price can not reflect the net qin real value, so we consider acquiring, purpose is very simple, expect to realize the value added in the future.

in the current network alarm hasn’t completely remove, qin bison though seems to be some gambling venture capital composition, but is really took a fancy to the real value of the net of the qin dynasty.

prior to the release of bid price is $6.9, the market value of $333 million. Net of the qin dynasty history the highest price is $25.90 in March last year, valued at $1.25 billion, so a poor contrast found out nearly four times. If net qin existing business and incremental to healthy development, the network of the qin dynasty up should be a matter of course.

since last year, the net of the qin dynasty has grown from a single mobile security transition to platform type company, covering mobile security, games, enterprise services, and advertising and search, etc. Net qin’s latest 2013 reported net revenue of $67.9 million in the fourth quarter year-on-year growth of 126%, despite the security business revenue decline, but in other business has achieved substantial growth, such as advertising revenue reached $16.7 million, up 532.4%, rose 51.5%; Mobile business revenue rose 53.1% to $23.5 million.

in addition, according to analysys, according to a report in torrents business in the domestic mobile game platform vendor has risen to the top four. It has been recognized as net qin is one of the most valuable asset. See in trading data in May this year, net of the qin dynasty was for $25 million to sell a 5.88% stake in torrents, at the time of torrents valuation has amounted to $425 million.

from this perspective, the buffalo capital to net the qin besides torrents of business overall valuation of about $047 million (4.72 4.25), it is clearly undervalued.

net qin now can really worth? It is no problem, and everybody think tank. Although in the short term is difficult to reach the United States last year capital market forecast $33, but through the darkest period of the network of the qin dynasty seems to have started to recover. Change after the audit, the rhythm of the annual report released began to really accelerate, after a company has early warning results positive cases, the annual performance should be order, also certainly will drive stock prices, to more than $9.8.

2, bison capital to expand the propaganda?

from an investment perspective, will choose high quality assets. For the current network of the qin dynasty, is a piece of fat and biggest cash cows in torrents. Buffalo capital has passed the capital operation of the above mentioned occupies a stake, qin has got the net the most high-quality assets, the following should be sitting on earnings.

so why buffalo capital after nearly three months, bigger capital plan to private network qin? In hunting cloud network jun, in addition to the above so-called expected appreciation in the future, there should be Xu Peixin marketing purpose in it.

first, bison capital, founded in September 2013, is set up after Xu Peixin sell red children, in nearly a year, in addition to the torrents, few its portfolio, brand awareness is weak. It is well known that the investment business is not only an acquaintance with needle, lead more is knock on a project. With the help of net capital of qin this very period deal news quickly captured the mass media, also is four two dial one thousand jins, full force.

three, mesh qin cash-rich

response to muddy water in October last year, according to the deposit certificate of the qin dynasty in mainland China and Hong Kong 14 $295 million deposit in bank account. And sell shares in torrents and existing business cash flow, net qin holds more than 2 billion yuan.

this for the present micro kui nets qin, capital demand is not big to the outside world. Besides, games, advertising, and enterprise business is on growth performance, and this is the confidence of the investors.

of course, the us capital market also get the real feeling of the qin dynasty “cruel”, as a listed company is almost everywhere passive. Should be in strict accordance with the rules not only, more with some profit-seeking institutions means to fight. These has privatised delisted or stimulate the company’s management idea, but has nothing to do with the buffalo capital should be.