A comprehensive identity information service provider, whose performance continues to grow steadily. The company is the world's leading integrated identity information service provider, committed to providing industry customers with integrated software and hardware solutions for online and offline identification and management applications. The company's core business is to provide information security, data management and industry application solutions using smart cards as carriers. In recent years, the company has adopted the two-wheel drive of “endogenous growth+epitaxial development” as its development strategy, widely deployed various fields of identity information services, realized product integration and industry chain extension for integrated identity information services, and expanded the company's future continuous development space. In recent years, the company's performance has continued to grow steadily. In 2014-2018, the company's revenue increased from 228 million to 600 million, a compound growth rate of nearly 22%, and the company's net profit increased from 44 million to 108 million, with a compound growth rate of nearly 20%. In the first quarter of this year, the company achieved revenue of 137 million yuan, an increase of 62.99% over the previous year, continuing the strong growth momentum. Currently, the company has sufficient orders, and various business lines in the two major sectors of identity and transportation are operating smoothly, and future performance growth can be expected. Identification and intelligent application business: Overseas, online electronic passport management platforms, and customer business in the public security and foreign affairs industry go hand in hand. The company's most traditional business is the ID card and e-passport issuance and production equipment business. This business is in a leading position in China, but is currently developing relatively steadily, and on this basis, identification and intelligent services such as overseas, online e-passport management platforms, and public security and foreign affairs industry applications are developing rapidly. In terms of overseas business, the company has accumulated a large number of projects such as Hong Kong's next-generation smart ID card system package C, the “Hong Kong Homecoming Permit Self-Service Verification System” for Hong Kong and Macao residents traveling to and from the mainland, the Belarusian electronic passport and electronic ID card, and the Nigerian election system. These projects have laid a good foundation for the company to carry out identification services such as security document verification and scenario application in Eastern Europe, Africa and other regions, and the company's competitiveness and influence in the international market continue to increase. The online electronic passport management system is mainly used in the field of passport management by the Party, government, military, foreign affairs departments, enterprises and institutions to solve problems such as inefficient manual passport management. The company has promoted this business in the fields of airlines, banks, etc. since '17, and has achieved good results. Currently, the company is continuously optimizing product design and solutions, and sales of related solutions are growing rapidly. In addition, in terms of industry applications, the company is focusing on creating intelligent and convenient service scenarios for customers in public security, foreign affairs, social security, finance and other industries. Related products and solutions include: smart livelihood policing (household administration, immigration, traffic police) solutions, smart social security office hall solutions, smart bank branch self-service acceptance systems, etc. Currently, orders in public security and foreign affairs fields are growing rapidly. The above mentioned businesses will strongly guarantee the company's future growth. Smart transportation business: Expanding from payment terminals to overall smart bus solutions. In the public transportation (bus+rail) industry, the company provides overall solutions for small electronic payments integrating various forms of online and offline payments. The company's payment acceptance terminals and solutions have covered more than 100 cities across the country, including Shenzhen, Chongqing, and Nanchang. The company uses payment terminals and interconnection as an entry point, gradually extends intelligent applications to the customer's main business stream, creates intelligent bus solutions supported by four major system platforms for small electronic payments, intelligent scheduling, passenger flow analysis, safety management and operation services, constructs a smart bus cloud platform, uses multi-dimensional data analysis to assist customers in management decisions, empowers customer operation management and efficiency improvement, and builds a platform for data interaction and operation between customers and the Internet in the long term. The development of mobile Internet has promoted the rapid promotion of mobile payment methods such as QR codes and mobile NFC in the field of public transportation. Electronic payment acceptance terminals are integrating various payment methods such as smart cards, QR codes, and mobile NFC, etc., to become an important acquisition and operation port for bus big data, and a core node for online and offline integration. Based on rich industry experience, customers and channel resources, the company has joined hands with Ali and Tencent, bringing together the company's overall solution capabilities and customer resource advantages and Internet companies' platform advantages to jointly create a new path for the development of public transportation mobile payments and promote The company's identification business has migrated from offline to online, speeding up the company's planning, layout, and development of businesses such as offline and online identity management interconnection, and online trusted identity authentication services, etc., and gradually realized the transformation from a hardware supplier to a service provider. Investment suggestion: Considering the company's outstanding card position advantages, it is estimated that the company will achieve net profit of 140, 180, and 220 million yuan in net profit in 2019-2021. The corresponding valuation is 23, 18, and 14 times the current market value, giving it a “highly recommended” rating. Risk warning: The strategic development process falls short of expectations; industry customer development falls short of expectations; progress in technology development falls short of expectations; and overseas business development results fall short of expectations.