Due to the price war in CDN industry and the stock price of Netsux Technology plummeted by 20% in the eighth trading day
It has been known as the GEM Baima Stock Network Technology. Last Tuesday (March 14), the quarterly performance notice was issued, and the stock price of the controlling shareholder and the actual controller dropped all the way due to the equity reduction plan. The closing price was 53.60 yuan/share on March 13, and 42.60 yuan/share on March 23. The share price fell by more than 20% in eight trading days.
According to the 2016 annual net profit report, the operating revenue in 2016 was 4.447 billion yuan, up 51.67% year on year; The net profit was 1.25 billion yuan, up 50.41% year on year; RMB 2.5 for 10 to 20. However, since 2017, network technology has not been able to continue the previous high growth, and the performance of the first quarter will decline by 0-30%.
Netbook Technology said that in the first quarter of 2017, in the domestic CDN (content distribution network) market competition, the market price fell sharply, leading to a decline in the company's gross margin.
In addition, the controlling shareholder, the actual controller Chen Baozhen and the storage director of the company will hold no more than 500 million shares and 225 million shares through transactions for a period of six months, accounting for more than 0.62% and 0.28% of the company's existing shares.
Under the pressure of declining performance, the "high transfer+reduction" plan of Sci Tech Network has become the stock price of drugs. Some investors believe that this is the "stepping stone" for future major shareholders to stabilize their cash.
It is worth noting that domestic CDN manufacturers and cloud computing companies have started the price war since 2016, and there is no easing trend. The impact of network technology on profitability will continue.
It is understood that Alibaba Cloud first launched the CDN price action, and then Tencent Cloud and other manufacturers joined in the price reduction. Alibaba Group's profit in 2016 shows that Alibaba Cloud's price has dropped 17 times in the past year, and its core cloud products have dropped 50%; In addition, the price of Tencent Cloud CDN is 25%; And music as the cloud directly launch CDN free services.
"The current CDN industry is different from the previous years. A few years ago, the number of participants decreased, and new manufacturers joined the market to adjust the price significantly." Liu Chengyan, director of network technology, said that our company also made adjustments, and the gross profit rate also declined significantly, which affected the profits of the entire company.
As for this situation, Liu Chengyan said, "At present, the overseas business has high profits and high gross profit margin, which is the focus of future development.
Network technology has gone through a glorious history for some time. On February 10, 2014, Internet Technology closed at 134 yuan, more than Guizhou Moutai (387.900, -1.89, -0.48%), and sometimes became the "first batch of high priced stocks" of A-shares.
