Events:
According to the company's annual report, the company achieved an operating income of 706.1241 million yuan in 2016, an increase of 25.96 percent over the same period last year, and a net profit of 101.2073 million yuan belonging to common shareholders of listed companies, an increase of 17.67 percent over the same period last year.
The company issued a forecast for the first quarter of 2017, realizing a net profit of 1900-23 million yuan for shareholders of listed companies, down 27.28% and 11.97% from the same period last year.
The company is a professional information security IC design enterprise. At present, based on integrated circuit information security, the company strives to create general financial and personal information security solutions, providing customers with USBKEY master chips, financial terminal security chips and security modules, smart card chips, RCC near-field payment and trusted computing and other products. By the end of 2016, the company has applied for 1226 patents at home and abroad and obtained 537 patents authorized at home and abroad. We believe that with the development of mobile payment and the Internet of things industry, hardware information security solutions are expected to be recognized by the market; at the same time, the country's attention to information security has been raised to a new height. the demand for autonomous, controllable, secure and reliable products will continue to rise. The company is the target of A-share information security IC design scarcity, and is expected to benefit from the dual drive of national information security requirements and industry terminal product hardware security requirements, and enter a new stage of growth.
Seize the financial terminal security chip market opportunity to consolidate the leading position of security chip.
1. With the rise of many online payment methods, the market capacity of traditional USBKEY is affected, and the competition tends to be fierce. The company quickly adapts to market style switching and launches products with high security, low power consumption and multi-scene adaptation to enhance product competitiveness in traditional fields; in addition, the company has developed related products with wireless transmission functions used in mobile networks, which has entered the stage of market promotion and customer introduction.
2. The company seizes the high growth opportunity of the financial terminal master chip market, continues to develop new products to ensure the leading position in the industry, and vigorously develops the financial payment terminal market. The revenue scale of financial terminal security chips and security modules has increased significantly compared with the same period last year.
3. In terms of trusted computing chips, the company strengthens the depth of cooperation with major customers and promotes the application of trusted computing products and solutions in the fields of mobile terminals, Internet of things and industrial control.
We believe that with the popularization and penetration of wireless connection intelligent terminals, the security requirements of the mobile terminal industry will be paid attention to, and the company will fully layout mobile network hardware security based on the profound accumulation of USBKEY, and with the opening of security markets such as mobile terminals and the Internet of things, the company will usher in rapid growth.
Take advantage of the trend of localization of financial IC card chips to expand the industry card application market. It has become an inevitable trend for the financial IC card with security chip to replace the traditional magnetic stripe card. After the introduction of the financial IC card market and the bank pilot, the company cut into the large-scale supply and realized the rapid growth of revenue and market share when the localization of the financial IC card was started in the second half of the past 16 years. At the same time, the company actively distributes the industry card market such as resident health card and social security card to expand the scope of product application.
Adhere to the independent innovation of RCC (limited area communication) technology, and actively promote the landing of relevant standards.
The RCC technical standard of the company's independent intellectual property rights has been gradually recognized by the state, and the Ministry of Industry and Information Technology announced 8 national standards related to RCC technology at the end of 2015. The company insists on developing RCC technology for mobile payment. Once the relevant standards are landed, the company will give full play to the technological advantages of independent innovation and usher in a new chapter in the development of RCC business.
Investment advice: buy-An investment rating. We estimate that the company's net profit from 2017 to 2019 is 1.81,2.40 and 304 million yuan respectively, and the net profit growth rate is 79.0%, 32.6% and 26.7% respectively, and the corresponding EPS is 0.32,0.43 and 0.54 yuan respectively. For the first time, the investment rating of Buy-An is given, taking into account the potential growth of the company's business, with a monthly target price of 20.8 yuan for 65 times PE,6 in 2017.
Risk tips: the global macroeconomic downturn, the promotion of localization in the field of information security is not up to expectations, financial and other industries security and payment chip demand is not up to expectations.