1. The company focuses on core technology R&D and innovation, and core products are beginning to have intellectual property value advantages
The company takes R&D and innovation as the foundation for establishing an enterprise, regards intellectual property as the root of the core competitiveness of the enterprise. It has been successively rated as an advanced unit for the Beijing Patent Pilot, a Beijing Patent Demonstration Unit, and an enterprise intellectual property management standardization unit, and obtained AA grade in the enterprise credit rating. By the end of 2019, Feitian Chengxin and its subsidiaries had 231 computer software copyright registration certificates; 1,226 authorized patents were obtained, including 948 invention patents (including 157 foreign patents), 70 utility model patents, and 208 design patents.
2. Domestic: Traditional business markets are becoming saturated, creating innovative products in the IOT era
In the domestic market, the company expanded its product field to intelligent IoT. On the basis of traditional U shield and token products, security technology was integrated into more product forms, such as the China Agricultural Bank code scanning box launched by the company, making full use of its advantages in the financial sector to expand the market. At the same time, the company expanded its chip products into the field of smart IoT devices, such as the Bluetooth object finder “crowdfunded” at Xiaomi, developing products from a single market to a diversified market.
3. International: He is the director of the FIDO Alliance, and his products amaze major international players
In foreign markets, the company explores the market with “identity authentication” in an advantageous field. The products can meet global system standards, and develop a new blue ocean of feitian honest future product business. Global information security spending is growing strongly. Enterprise-level customer security needs are leading high-end customers. Feitian Honesty actively explores overseas cooperation opportunities and is a member of the FIDO Alliance's board of directors with its own strength. There are only three domestic companies, which shows the reputation and position of Feitian Chengxin in the “circle of friends” overseas.
Company profit forecast and investment rating: We expect the company's net profit to parent in 2020-2022 to be 0.97, 107 and 119 million yuan respectively, and the corresponding EPS is 0.23, 0.26, and 0.29 yuan respectively. The current stock price corresponds to the 2020-2022 PE value 75, 68, and 61 times, respectively. Maintain a “Recommended” rating.
Risk warning: risk of saturation of the traditional business market; risk of competition in the IC card market; risk of uncertain progress in large-scale application of innovative technology.