The market for authentication and information security equipment has huge room for development USB keys can provide good protection for online banking logins. With the rapid development of online banking, the USB key market will continue to grow rapidly. Since telephone banking and mobile banking are offline, OTP dynamic tokens are the most appropriate two-factor authentication products. Generally, the battery life is only about 3 years. Since the battery is embedded in the product, it is impossible to replace the battery separately and must be replaced as a whole when it expires. Therefore, the OTP dynamic token market is expected to continue to develop rapidly. In March 2011, the People's Bank of China issued “Opinions of the People's Bank of China on Promoting the Application of Financial IC Cards”. The software and hardware market demand driven by financial IC card upgrades exceeded 50 billion yuan. The corresponding IC card reader market will exceed 8 billion yuan by 2015. Comprehensive coverage in the field of identity authentication information security equipment. After more than ten years of development, the company has formed a rich product line including four series of products, including USB keys, software encryption locks, OTP dynamic tokens, smart cards, and their readers and writers. In 2013, the company ranked in the top three in the industry in the field of identity authentication and information security. Among them, USB Key products ranked in the top three in the industry. More than 130 domestic banks, including ICBC, the Agricultural Bank, and the Bank of China, used the company's products and services. The company's OTP dynamic token products ranked in the top three in the industry; the company's encryption lock products ranked in the top two in the industry. In the field of smart cards, the company has introduced mature products with independent intellectual property rights to the market and the response has been good. The company's revenue has been growing rapidly for three consecutive years. In the overall composition of revenue, the company's main business is prominent, accounting for nearly 100% of revenue. The company's revenue grew rapidly. The revenue growth rate reached 59.61%, 78.29%, and 39.93% in 2011-2013, mainly due to the rapid development of the domestic identity authentication information security market and the extension and expansion of the company's product line. The company's profits mainly come from USB keys, OTP dynamic tokens, and cryptographically locked operating income. The company's gross margin remained stable during the reporting period, close to a comparable average. The gross margins of USB Key, Dynamic Token, Encryption Lock, and Smart Card readers in 2013 were 38.46%, 46.71%, 51.02%, and 66.26%, respectively. The funds raised are used to enhance the company's products and technical strength. The funds proposed by the company focus closely on the main business, upgrade the technology of existing products, and develop new products, focusing on improving the ability of the company's products to adapt to the market and continuous technological innovation capabilities, enhance the company's technological research and development capabilities, ensure a continuous leading edge in product technology, and improve the company's marketing service network. Reasonable price range The company's issue price is 33.13 yuan, which is 12.4 times the static PE based on 2013 earnings per share. We expect the company to achieve earnings of 3.05, 4.10, and 5.15 yuan per share from 2014 to 2016, respectively. Based on 25-30 times PE, the reasonable price is 76.2 to 91.5 yuan.