Event: an announcement was issued on November 21, 2017. 1) carry out quadripartite strategic cooperation with Tencent computer, Tenpay pay, Wantai Hexing, jointly promote the pilot and landing of "Traffic Transit QR Code" innovative application industry solutions and innovative business models in Shanghai and Xiamen, and actively recommend the implementation and promotion of businesses and services in Sifang cities. 2) Tianjin Qiruitiancheng Equity Investment Center (360Industrial Fund) plans to add 75 million yuan to invest in the company's holding subsidiary Liangla (Shanghai) data Technology Co., Ltd.
Comments:
Tencent BABA rail "payment war" is imminent, AFC industry leader to take advantage of the card position to benefit greatly.
The scene of small UHF payment for subway trips is of great significance. Taking Beijing as an example, the average daily flow of the subway is more than 8 million times. If the average ticket price is 4 yuan, the annual transaction scale is more than 10 billion. If you consider more than 40 subway cities across the country, the transaction scale is far larger than the taxi and bicycle market, attracting the strong attention of Tencent and BABA. On November 16, Tencent and Guangzhou Metro Group jointly launched Metro Transit QR Code, which launched another important battle in the field of payment after the red packet and taxi-hailing war. As the leading enterprise of the national rail transit automatic ticket sales and inspection system, the company has a high position advantage; this cooperation with Tencent will include, but not limited to, the pilot operation of "Traffic Transit QR Code" in Shanghai and Xiamen. It is expected to explore new profit growth points of the company through the sharing of payment receipt and successful advertising business.
"scan the subway" by the principal giant 360 favor, a large number of entrances and data security ecology in an all-round way.
360 this strategic investment is intended to obtain a large number of user entrances to scan the code to take the subway, and at the same time improve the real-name network of urban intelligent transportation. According to the China Industrial Information Network, the number of people traveling in rail traffic in China has maintained an increase of more than 10% in the past few years, becoming an important mode of travel in China's first-and second-tier cities, thus opening the entrance to a large number of users. At the same time, the payment scene of "scanning code by subway" contains high-frequency geographical location information, so the unique commercial value of data is bound to attract much attention. In addition, the company plans to acquire Guozhengtong, which has been committed to fraud prevention data service for many years, and uses its authoritative data sources to conduct rapid identity verification of gate passage personnel data, so as to greatly improve traffic efficiency and gradually build a comprehensive data security ecology of "data acquisition-identity authentication-security protection".
Investment suggestion: the company is a leading AFC equipment provider in China, holding hands with Tencent 360. it will quickly improve the layout of subway "code scanning payment", and there is great potential for the subsequent construction of secure data ecology. Without considering raising matching funds, we expect the EPS in 2017 and 2018 to be 0.92,1.32 yuan, maintaining the "buy-A" rating, with a six-month target price of 45 yuan.
Risk hint: mobile payment policy risk; AFC industry innovation does not meet expectations
