Core viewpoints
The company is the country's leading smart card manufacturing enterprise: Chengtian Weiye was founded in 2006, is a smart card research and development, production, sales and service of high-tech enterprises. The company provides telecom SIM cards, financial IC cards, license ID cards and other products as well as quality derivative services through six production bases in Shenzhen, Shanghai, Beijing, Ningbo, New Delhi, Indonesia and three personalized centers in Shanghai and Shenzhen. After years of technology accumulation, the company has established a stable cooperative relationship with international well-known enterprises such as Gemalto, Ideamia and Gallid for ten years.
Magnetic stripe card for "core" promotion, financial IC has become a new growth point: financial IC card due to high technical content, compared with telecommunications card has a higher gross profit. The company relies on a solid group of major customers, while providing card products, financial IC card manufacturing services are driven by economies of scale to optimize the business structure.
The company gives full play to the synergy of "products + services" and gradually integrates into all aspects of the supply chain of international smart card suppliers. The two sides continue to deepen cooperation in the industrial chain cooperation.
Lay out the upstream chip to thicken the company's performance: chip is the core component of smart card products, and its technology update, product upgrade and new application areas play a role in promoting the smart card industry. In order to reduce costs and enhance the competitiveness of the industry, the company invests in R & D and production of smart card chips in Ningbo. The project is progressing smoothly and trial production is expected to begin in the middle of this year.
Investment suggestion: we predict that the return net profit of the company in 19-21 is 0.66,0.89 and 119 million yuan respectively, the EPS is 0.97,1.31,1.75 yuan respectively, and the corresponding PE is 30,22,17 times respectively. Cover for the first time, giving a "highly recommended" rating.
Risk hint: chip capacity release is lower than expected; 5G communication card replacement card demand is small.
