Main points of investment
Financial IC card leader performance steady growth the company's main business is R & D, production and sales of smart cards and related businesses. In the business segment, the financial IC card is the main source of revenue for the company. The company's financial IC card has been listed in most domestic banks, accounting for more than 15% of the market. It is the leading and mainstream financial IC card provider in the market. The company achieved a return profit of 373 million yuan in 2015, an increase of 27.53% over the same period last year. Benefiting from the high business cycle of the financial IC card industry, the company's performance has grown steadily.
Mobile payment card and tax control panel business is the main focus in addition to the financial IC card, the company also provides operators with SIM card and mobile payment NFC-SWP card, with the gradual introduction of NFC technology such as Apple pay in the mobile payment industry, we think that the mobile payment industry NFC technology will develop synchronously, and the company mobile payment NFC-SWP card will usher in a good opportunity for development. In addition, the company is also a production service provider of tax control panels. Under the background of the reform and growth of national operations, the company's tax control panel business is also a major focus of the company in the future.
The fixed increase will be smooth, and the layout of the small and medium-sized merchant micro service provider platform company will be smooth recently, and the company plans to issue no more than 63 million shares at 17.24 yuan per share and raise no more than 1.08 billion shares. The funds raised by the company will be invested in the construction of micro-merchant service network and system of small and medium-sized merchants, the acquisition of 51% equity in Yi Ka Yi, the research and development of mpos overall solution and industrialization projects, and supplementary liquidity. The company builds the service platform and network of small and medium-sized merchants by providing the overall mpos solution and using the one-card easy member management system as a means to enhance stickiness. To realize the transformation of the company from a hardware provider to a solution provider with the combination of software and hardware, and to further develop into a small and medium-sized micro merchant platform service provider to provide diversion or accurate marketing services, the company's one-card acquisition has been completed through its own funds, the company's mpos development has entered the testing stage, and the layout of the small and medium-sized micro merchants service platform has been steadily advanced.
Profit forecast and valuation rating: in the short term, we are optimistic about the performance growth space that the development of the mobile payment NFC industry brings to the company's mobile payment card business and revenue reform to the company's tax control panel business, and long-term optimistic that the company will realize the development and transformation from a hardware manufacturer to a software and hardware platform solution provider to a small and medium-sized and micro merchant platform provider. We predict that the EPS of the company in 2015, 2016 and 2017 is 0.52,0.65 and 0.81 yuan respectively, and the corresponding PE is 30,24,19 respectively. Give an overweight rating.
Risk hint: the implementation of the fixed additional issuance plan has changed, and the business development is not as expected.