Original insights:
The company is a high-tech industry integrating R & D, production, sales and services of smart cards. Products and services include telecommunications cards, financial payment cards, financial social security cards, ID cards and other smart cards, as well as comprehensive business card making solutions. The downstream market covers the main application fields of smart cards, such as social utilities, financial payment, telecommunications, social security medical care, transportation and so on. At present, the company has a number of patents, software copyright and smart card industry qualification certificates, and has passed ISO9001, ISO14001, ISO18001 and other quality management system certification.
Main points of investment
1. The gross profit margin is on the rise, and the net profit growth rate is faster than the revenue growth rate. The company's operating income increased from 194 million yuan in 2013 to 264 million yuan in 2016, with a compound growth rate of 10.82%. Net profit increased from 20 million yuan in 2013 to 43 million yuan in 2016, with a compound growth rate of 29.07%. The gross profit margin of the main business is maintained at more than 23%, and shows an upward trend. The gross profit margin of telecom card products is the main source of the company's gross profit, accounting for 61.16% of the company's total gross profit in 2014-2016, accounting for 62.69%, 71.13%, showing a steady upward trend.
two。 The scale and customer advantage are obvious, and the employee indirect shareholding strengthens the management advantage.
At present, the production capacity of the company is in the forefront of the industry. In 2016, the production and sales of smart card cards exceeded 1 billion, with a cumulative output of more than 10 billion. The company has a number of factories certified by ISO quality system including ISO9001, ISO14001 and OHSAS18001, equipped with high-quality personnel and industry-leading production equipment. Members of the core management team have rich experience in the industry, and indirect employee shareholding enhances subjective initiative and further strengthens the company's management advantages.
3. Investment suggestion
The revenue from 2017 to 2019 is expected to be 290 million yuan, 325 million yuan and 369 million yuan, and the net profit is 59 million yuan, 82 million yuan and 108 million yuan, corresponding to the PE of 62X, 45x and 34x.
4. Risk hint
Risk hint: the risk of market concentration; the substitution risk caused by mobile payment; the risk of industry franchise.
