Security applications-take advantage of NB-IoT Dongfeng to enter the security field of the Internet of things. On June 16, 2016, the NB-IoT core standard agreement was formally approved and frozen at the 72nd 3GPPRAN Plenary session in Busan, South Korea, and the industrial application of the Internet of things entered the fast lane, and it is expected that a large number of smart device terminals will access the Internet of things. The terminal of the Internet of things has many functions such as data collection, transmission, calculation and so on, and it is widely used in many national infrastructure fields, such as electric power, water, environmental protection and so on. Information security problems can not be ignored. The company gives full play to its own advantages and develops eSIM integration modules to create identity tags for Internet of things terminals. ESIM has the characteristics of small size, energy saving and stability, so it is an optimization scheme suitable for identification of terminals in the Internet of things. Based on the technology and supply chain advantages in the field of SIM cards, the company works with upstream chip factories and downstream operators to build a secure data transmission scheme for the Internet of things, which is expected to be widely used in many fields in the future.

Build a MPSP health insurance monitoring platform and transform from a product solution provider to a platform operator. With the expansion of the coverage of designated medical insurance institutions and the scale of the fund, the demand for stable and efficient information monitoring means is becoming more and more urgent. The company independently developed the MPSP platform, which can realize the location management of the social security PSAM card, and at the same time help to improve the management efficiency of the regulatory department through trusted data collection, return and analysis and processing, and reduce the operating costs of designated medical institutions as a whole. As a leading enterprise in the field of smart card, the company has rich experience and platform resources in the field of social security PSAM card. The company's MPSP project has been developed for many years, and has been successfully piloted in Zhuhai, Guangzhou and other places for three years, which has been well received by local regulatory authorities and designated medical institutions, and has the advantage of mass popularization in the future. This project is a key step in the transformation and upgrading of the company from a product solution provider to a platform operator. on the one hand, it can provide the company with stable cash flow, and on the other hand, it can make full use of the resources of the medical insurance system. in the future, there is a broad space for development in many aspects, such as big data processing, flow operation and so on.

Cover for the first time, giving a "buy" rating. We are optimistic about the company's strategic planning for the transformation from a product solution provider to a platform operator based on the leading advantages of smart cards, cutting into the Internet of things and medical insurance monitoring areas. It is estimated that the EPS from 2016 to 2018 is 0.21, 0.30 and 0.38 yuan respectively, giving a buy rating.

Risk hint: the eSIM or MPSP project is not progressing as expected.