Cloud platform business expansion is intensifying, and leading advantages are becoming more and more prominent. In recent years, with “three links and two platforms”
The pace of education informatization construction in the target country is accelerating year by year, and the company continues to expand the education cloud business market in accordance with the online education business development strategy. As the sole partner of the Central Electronic Education Center's national education resources public service platform construction project, the company will continue to maintain its leading market position in the field of national education informatization.
The field of mobile phone security services has mastered technological advantages and has profoundly benefited from the mobile terminal security wave. The mobile phone security solutions developed by the company support mainstream mobile security technologies currently on the market (such as TEE, eSE, TSM, Token, HCE, etc.) and have the advantages of secure application management and multi-application deployment. With the continuous popularization of mobile phone security and mobile payments, it is expected that the mobile security service market represented by TEE will explode this year. While grasping technological advantages, the company is strengthening cooperation with mobile terminal manufacturers and security application providers and gradually moving towards secure application platform operators, which is expected to benefit deeply from this wave.
The tax control board business continues to benefit from the promotion of “business reform and growth” policy. The “business reform and growth” pilot to expand the scope of non-taxpayers continues to drive demand for corporate tax control products. The lifestyle service industry, construction industry, real estate industry, and financial industry will soon incorporate “business reform” and future innovations in handheld billing devices such as mobile phones have brought new opportunities for the continuous development of the company's tax control business. It is expected that this business will continue to maintain high growth.
The profit level of the financial IC card business has declined, and the innovative business has been further deployed. The main source of contribution to the company's 2015 results was still the financial IC card business, but due to a sharp drop in product sales prices, product profit levels declined. Currently, in addition to deploying online education and mobile security services, the company is also actively promoting the development of Internet platform service services such as supply chain O2O+ financial payment services, which is expected to create another growth point in performance.
The company is in a critical period of development and has been given a neutral rating for the first time. The company continues to focus on the overall business development strategy of “cloud+terminal” and “product+service”, and actively transforms its strategy, and is expected to become a leading enterprise in education cloud platforms and mobile payment security. We forecast the net profit of listed companies in 2016-2018 to be 66.30/94.13/154.41 million yuan, respectively, and EPS of about 0.15/0.22/0.36 yuan. Considering that the average PE (2016E) of comparable companies is 106.87 times, we gave the company a 2016 PE107 times valuation, with a target price of 16.05 yuan, giving the company a “neutral” rating for the first time.
Uncertainty analysis. The company's transformation fell short of expectations.