Financial equipment "rising star"
Hengyin Finance is a leading smart banking solution provider with financial self-service equipment as the core. Its main products are cash devices, including ATM, CRS, non-cash devices, smart teller machines, as well as software supporting products and related services.
There is still room for cash equipment, and non-cash equipment continues to break out.
Although the growth rate of cash equipment has obviously slowed down, in terms of per capita ownership, it still lags behind developed countries such as South Korea and Canada. In addition, Postal Savings Bank of China, rural credit cooperatives and urban commercial banks are developing rapidly and have a large demand for ATM, so there is still room for cash equipment in the future.
Non-cash equipment is the focus of procurement by major banks. at present, smart teller machines and super counters are beginning to sell. In 2016, Agricultural Bank Of China deployed 52400 independent service terminals, Bank of China 36100, CCB 27900, ICBC 29400. In addition, Postal savings and Bank of Communications are also expected to deploy, which shows that the demand for non-cash equipment continues to be strong.
Industry gross profit margin is expected to recover gradually
Under the background of independent control, the financial equipment industry has also gradually completed the reshuffle. At present, the localization rate is about 60%, which is higher in the big banks, so the price war situation is expected to improve. In addition, the people's Bank of China's gradual improvement in the purchasing standards of financial equipment is also conducive to the survival of advantageous enterprises, so we judge that the gross profit margin of financial equipment is expected to recover gradually in the future.
Rise abruptly based on accumulated strength, non-cash equipment is the main driving force for future growth.
After years of accumulation, the company has been shortlisted not only in all five major banks, but also in 8 national joint-stock commercial banks, 48 urban commercial banks and 26 provincial-level rural credit cooperatives across the country. In terms of cash equipment, the company's ATM market share in 2016 was 15.96%, ranking second and non-cash equipment. The company won 25% share in the smart ATM procurement project of CCB in 2016, ranking second.
Profit forecast
We believe that the company's cash equipment can remain stable, non-cash business continues to double growth, gross margin has improved, in addition, the company is also actively layout smart banks, smart products, is expected to occupy the card advantage. Youxiang estimates that the company's operating income from 2017 to 2018 will be 1.457 billion yuan and 1.872 billion yuan, and the net profit will be 166 million yuan and 213 million yuan respectively, and the corresponding EPS will be 0.79,1.01 yuan per share respectively. Due to the short listing time of new shares, the stock price may fluctuate sharply, so we give it a "no rating" out of caution.
Risk hint
Sales of non-cash equipment fell short of expectations; gross profit margin returned less than expected.
