Event: on the evening of July 18, Xiongdi Technology issued an announcement to launch the company's 2019 restricted stock incentive plan, encouraging 100 people, including directors, senior managers, middle managers and core backbones, with a total of 1.67 million shares. accounting for 1.24% of the company's total share capital.
Comments:
The company's strategy is clear, push the incentive plan to further dispatch the enthusiasm of employees.
The company is the world's leading identity information integrated service provider, committed to providing industry customers with integrated software and hardware solutions for online and offline identity identification and management applications. the company's core business is to provide smart card as the carrier of information security, data management and industry application solutions. In recent years, the company takes "endogenous growth + extension development" two-wheel drive as the development strategy, widely distributes many areas of identity information services, realizes the product integration and industrial chain extension of identity information integrated services, and expands the company's future sustainable development space.
The company launched a 19-year restricted stock incentive plan on the evening of the 18th, encouraging 100 people, including directors, senior managers, middle managers and core backbone, with a total of 1.67 million shares, accounting for 1.24% of the company's total share capital. the grant price is 12.61 yuan per share, and the three-phase unlocking conditions are that the assessed net profit in 2019, 2021 and 2021 is not less than 10%, 25% and 45% respectively compared with the growth rate in 2018. The strategic layout of the company's identity integrated service and intelligent public transportation is clear and steadily advancing. This incentive will further mobilize the enthusiasm of the company's management and employees and promote the continuous landing of the company's strategy.
Identification and intelligent application business: overseas, online e-passport management platform, public security foreign affairs industry customer business go hand in hand.
The most traditional business of the company is ID card and electronic passport issuing and making equipment business, which is in a leading position in China, but its current development is relatively stable. On this basis, the extended overseas, online e-passport management platform, public security foreign affairs industry applications and other identity identification and intelligent business are developing rapidly. In terms of overseas business, the company has accumulated a large number of projects, such as package C of Hong Kong's next generation smart ID card system, Hong Kong and Macao residents' entry and exit permits to and from the mainland, "Hong Kong homecoming permit self-help forensics system", Belarusian electronic passport and electronic ID card, Nigerian election system, and so on. The above projects have laid a good foundation for the company to carry out security document verification, scene application and other identification business in Eastern Europe, Africa and other regions. The company's competitiveness and influence in the international market continue to improve. The online electronic passport management system is mainly used in the field of passport management of the party, government and military, foreign affairs departments, enterprises and institutions to solve the problem of low efficiency of manual passport management. since 17 years, the company has promoted this business in airlines, banks and other fields, and achieved good results. at present, the company is constantly optimizing product design and solutions, and sales of related solutions are growing rapidly. In addition, in terms of industry applications, the company strives to create intelligent and convenient service scenarios for customers in public security, foreign affairs, social security, finance and other industries. Related products and solutions include: smart people's livelihood policing (household administration, entry and exit, traffic police) solutions, intelligent social security service hall solutions, smart bank network self-service acceptance system, etc., at present, orders in public security, foreign affairs and other fields are growing rapidly. The above business will effectively guarantee the future growth of the company.
Intelligent transportation business: expand from the payment terminal to the intelligent public transport overall solution.
In the public transport (public transport + rail) industry, the company provides integrated online and offline micro-electronic payment solutions. The company's payment acceptance terminals and solutions have covered more than 100 cities in Shenzhen, Chongqing, Nanchang and other cities across the country. Taking the payment terminal and interconnection as the starting point, the company gradually extends the intelligent application to the main business flow of customers. build an intelligent public transport solution supported by the four system platforms of small electronic payment, intelligent dispatching, passenger flow analysis, security management and operational services, build an intelligent public transport cloud platform, provide management and decision-making assistance for customers with multi-dimensional data analysis, and enable customer operation management and efficiency improvement. Build a data interaction and operation platform between customers and the Internet in the long term to store energy for big data bus. The development of mobile Internet has promoted the rapid promotion of mobile payment methods such as QR code and mobile NFC in the field of public transport. Electronic payment acceptance terminals are merging various payment methods such as smart card, QR code and mobile NFC, becoming an important acquisition and operation port for big data and the core node for the combination of online and offline. Based on rich industry experience and customer and channel resources, the company has held hands with BABA and Tencent one after another. Combine the overall solution capabilities of the company with the advantages of customer resources and the platform advantages of Internet companies, jointly create a new path for the development of public transport mobile payment, promote the migration of the company's identity identification business from offline to online, speed up the progress of the company's planning, layout and development of offline and online identity management and interconnection, and online trusted identity authentication services, and gradually realize the transformation from a hardware supplier to a service provider.
Investment suggestion: considering that the company's card position advantage is prominent, the company is expected to achieve a net profit of 1.4,1.8 and 220 million yuan from 2019 to 2021, corresponding to the current market value of 23, 18, 14 times, given a "highly recommended" rating.
Risk tips: the process of strategic development is not as expected; the development of industry customers is not as expected; the progress of technology development is not as expected; and the results of overseas business development are not as expected.