Event
On the evening of November 21, 2017, the company announced:
The company signed the "Traffic Transit QR Code" Strategic Cooperation Framework Agreement with Tencent, Tenpay and Wantai Hexing. In line with the principles of equality, voluntariness, mutual benefit and mutual benefit, the Quartet has reached and signed this agreement through friendly consultations on matters relating to innovative intelligent payment, innovative big data application and innovative business model in the field of urban public transport, combining the business and resources of all parties.
Tencent actively promotes "Traffic Transit QR Code". The company is the equipment leader of rail transit and BRT automatic ticket selling and checking system (AFC). It cooperates with Tencent and other parties to show the competitive strength of the company's core business in the market and technology.
Tencent has recently actively promoted "Wisdom Transit QR Code" based on Wechat, and Ma Huateng has also appeared in Hefei, Guangzhou and other places to personally promote "Wisdom Transit QR Code". The company in (1) the market: the company ploughs the market for 16 years, is one of the participants in the technical specification formulation of AFC terminal equipment of Shanghai Metro, and currently undertakes the rail transit AFC terminal equipment project throughout dozens of large and medium-sized cities in China, the company has also successfully applied its products to BRT and bus stations, and the products have entered Jinan, Urumqi, Liuzhou, Zhoushan, Lianyungang and other places BRT, showing a strong market development ability. (2) Technology: the company has independently developed dozens of core modules and terminal products of AFC terminal equipment of different standards, and actively promoted major asset restructuring. Recently, Guozhengtong, which is proposed to be acquired, is in a leading position in the market segment of identity information authentication and education and student status audit, and technologies such as identity authentication and portrait comparison technology are integrated into the company's AFC business. This cooperation shows the recognition of Tencent and other parties to the company's core business market and technical strength.
This cooperation will first be piloted and landed in Shanghai and Xiamen. Tencent and other parties will also actively recommend the company's business development in other cities where it does business, and the company's AFC business development will be accelerated.
This cooperation, Sifang will give full play to their respective advantages, combined with the company's experience in rail transit, bus rapid transit (BRT) and other areas of AFC equipment and Tencent and other parties in payment, credit and other technical framework and traffic, value-added services and other Internet operation resources and experience, jointly promote "Traffic Transit QR Code" innovative application industry solutions and innovative business model pilot and landing in Shanghai and Xiamen In addition to Shanghai and Xiamen, Tencent and other parties will also actively recommend the company as an important partner to promote and implement in the cities where they have already done business. According to media reports, Guangzhou, Qingdao, Zhumadian, Foshan, Hefei, Jinan, Zibo, Laiwu, Hohhot, Changde, Shanwei and other bus lines have been connected to Tencent and Transit QR Code, and the cooperation with Tencent is expected to accelerate the company's business development in the above cities.
The company's AFC business benefits from the national rail construction, the protection of its own strength and production capacity, and develops steadily. The production capacity of the intelligent terminal equipment production line built in Pinghu City is expected to increase by 3000 units per year. In response to the increasing market demand, the company's capacity advantage has become the guarantee of core competitiveness. By the end of the third quarter, the company had a reserve order of about 680 million. This cooperation will accelerate the promotion of the company's AFC business.
This cooperation is expected to help the company explore new profit growth points through business such as payment receipt and advertising sharing.
This time, the partners will deeply explore the continuous operation and innovative business model based on "Traffic Transit QR Code", which will contribute to the upgrading of the company's business model, and is expected to explore new profit growth points through payment receipt sharing and advertising business sharing. it will help to speed up the transformation and upgrading of the company's overall ecological strategy.
Investment suggestion
The company cooperates with Tencent and other parties on the "Traffic Transit QR Code" strategy, which will promote the intelligent upgrade of the company's AFC equipment, speed up the national promotion and implementation of the company's AFC business, and is expected to explore new profit growth points through payment receipt sharing and advertising business sharing. It is estimated that the EPS of the company from 2017 to 2019 is 0.44,1.06 and 1.35 yuan respectively. Give a "recommended" rating.
Risk tips: business progress and performance fall short of expectations, policy risks, and increased competition
