Events:
The company issued an announcement, according to the National Standardization Management Committee "people's Republic of China National Standard Bulletin", based on national technology, independent innovation and research and development based on 2.45GHz RCC (limited area communication) mobile payment related technology has officially become the national standard of mobile payment.
Near-field payment has multiple advantages, safe, fast and full scene coverage. Near-field payment refers to the mobile phone through radio frequency, infrared, Bluetooth and other means to achieve local communication with POS and other terminal devices to achieve mobile payment technology. At present, the mainstream technologies are NFC and RCC. Compared with mobile Internet payment represented by scanning code, near-field payment has many advantages: (1) using hardware security mechanism, payment security advantage is significant; (2) offline payment is realized, and the payment scene is not affected by the network environment. (3) to achieve fast and stable work, which can be used in dense and fast payment scenarios such as subway and public transportation.
At present, mobile payment is in the ascendant. According to WIND statistics, China's third-party mobile payment market grew at a compound annual rate of 135.6% from 2009 to 2015, achieving rapid growth. With the increasing popularity of mobile payment and the increasingly complex network security environment, the advantages of short transaction time, full scene coverage and high security of the full offline high security mobile payment mode have become increasingly prominent, and the market demand is expected to increase significantly.
RCC national payment standards landed, independent control of a new chapter. At present, NCF near-field payment technology, which is widely used in apple pay,HuaweiPay, is jointly developed by Philips Semiconductor, Nokia and Sony Group Corp, and the core technology patents are in the hands of foreign IC companies. RCC near-field payment technology is independently developed by national technology-based domestic companies, using 2.45GHz band to achieve near-field communication, with complete independent intellectual property rights and core patents. Compared with NFC, in terms of technology, RCC technology does not need the hardware support of mobile terminals, and the RCC payment function can be realized by replacing SIM cards, and the application market is broader; in terms of security, RCC is completely autonomous and controllable, which meets the national security requirements for payment.
In the past period of time, RCC has not become a national standard for payment, and it is only used in a few closed environments (subway, campus), which limits the development of related industries. With the landing of the national standard, RCC technology will compete with NFC technology on the same stage, changing the disadvantageous position of competition since 2013, and the related industry chain is expected to grow rapidly.
RCC technology top-level designer, multiple business models to promote development. The company is the top-level designer of RCC, mastering core technologies such as system architecture and empty port protocol, as well as software and hardware product technologies such as communication modules and communication instructions. With the continuous fermentation of RCC industry, the company is expected to benefit deeply.
The company continues to explore RCC mobile payment business model, combined with Internet applications, and strengthen industry chain cooperation. We believe that RCC's independent and controllable business and leading technology is an important part of the company's development strategy. In the future, it is expected to combine with other applications to create a full-function platform for RCC mobile life and business ecosystem, and open up a new business model.
Investment advice: buy-An investment rating. We estimate that the company's net profit from 2017 to 2019 is 1.81,2.41 and 304 million yuan respectively, and the net profit growth rate is 79.0%, 32.8% and 26.5% respectively, and the corresponding EPS is 0.32,0.43 and 0.54 yuan respectively. Considering the company's business growth and the leading position of RCC technology industry, the monthly target price of 65 times PE,6 in 2017 is 20.80 yuan.
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.
