Main points of investment
RFID industry ushered in development opportunities: under the strong promotion of national policies, the rise of the Internet of things gave birth to the rapid development of RFID industry. RFID has been applied in finance, mobile payment, urban public utilities, transportation, medical and health, food safety and food anti-counterfeiting fields. With the continued support of special funds, the application pilot projects of RFID will further increase. With the development in recent years, the RFID industry has entered a mature period of integrated industrial chain. The company is one of the earliest enterprises engaged in ultra-high frequency RFID technology research and application development in China, and has been in a relatively monopoly position in the railway RFID industry. At the same time, through shareholding or holding other companies, the products radiate railway, books, retail logistics, tobacco and alcohol, agriculture and animal husbandry, intelligent transportation, grain depot management and other application fields, improving the efficiency and efficiency of product application.
Technological innovation to further consolidate core competitiveness: as of June 31, 2015, the company has obtained a total of 259 patents, including 32 invention patents, 185 utility model patents, 42 design patents, 113 registered software copyrights, 105 proprietary technologies and 119 papers published in foreign journals. After more than ten years of accumulation in the field of RFID, the company has its own core technology and intellectual property rights in the field of UHF RFID, and the product brand has grown into a well-known brand in the global RFID industry. At the same time, the company participated in the formulation of a number of standards in the industry, further highlighting the company's leading position in the RFID industry. With the construction of three major R & D platforms: chip R & D center, label and reader R & D center and book equipment R & D center, the company will significantly improve the efficiency of product research and development and speed up the introduction of its products to the market. to a certain extent, it ensures the strategic realization of the company's technological innovation, and further strengthens the company's core competitiveness.
Performance growth of overseas investment enterprises, extension expansion or acceleration: during the reporting period, the overall performance of the participating companies achieved relatively rapid growth, and investment income increased significantly compared with the same period last year. The company adheres to the development model of the combination of endogenous development and epitaxial development. In March 2015, during the suspension period, the company planned a major asset restructuring and planned to acquire an Internet of things industry enterprise. Although the company announced its decision to terminate the planning of this major asset reorganization after the resumption of trading, according to the "Foreign Investment announcement" disclosed by the company, the company and Shenzhen Elite Times Fund Management Co., Ltd. jointly launched a professional investment management company for the Internet of things industry. And then initiate the establishment of the Internet of things industry M & A fund, in this way to continue to promote the relevant M & A process, extension expansion has an accelerated trend.
The gross profit margin of products has risen steadily: as the domestic economic development has entered the new normal, the macroeconomic growth rate has slowed down, and the overall operating environment of manufacturing enterprises is more severe. The company's comprehensive gross profit margin in 2013, 2014 and January-June 2015 was 29.45%, 29.77% and 30.99% respectively. The gross profit margin remained stable and rose slightly in the face of the economic slowdown, indicating that the company's brand has grown into a well-known brand in the global RFID industry, with strong market competitiveness and product pricing power.
Profit forecast and investment rating: the company's industry ushered in good development opportunities, based on technological innovation, tamped the core competitiveness, combined endogenous and epitaxial development models, and worked hard to realize the transformation of the business model from product suppliers to solution providers. In the future, with the rapid increase in demand in the field of full-product applications, the company's future business performance will be effectively improved. Therefore, we estimate that the company's EPS from 2015 to 2016 will be 0.11 yuan and 0.13 yuan respectively, and the corresponding PE will be 100 and 80 times respectively, giving the company a "cautious recommendation" rating.
Risk tips: new market development is not as expected, macroeconomic downturn, systemic risk