\u3000\u30 China Baoan Group Co.Ltd(000009) 97 Newland Digital Technology Co.Ltd(000997) )
China's financial IT industry is the leader, and its performance has warmed up and entered a period of accelerated growth Newland Digital Technology Co.Ltd(000997) was established in 1994 and listed on Shenzhen Stock Exchange in 2000. Adhering to independent research and development, the company has accumulated advantages in the field of QR code recognition technology and POS equipment. In 2021, the company achieved an operating revenue of 7.698 billion yuan, a year-on-year increase of 8.99%, and a net profit attributable to the parent company of 704 million yuan, a year-on-year increase of 54.95%. After the bottom of the performance recovers, it is expected to enter the acceleration period.
The competition pattern of third-party payment has been improved, and the SaaS ecosystem of data operation has become the starting point. Square supports the business model and prospects. 1) Since 2015, the central bank began to tighten the supervision of third-party payment institutions, and the national bank card consumption business reached 135.97 trillion yuan in 2021, a year-on-year increase of 16.55%. In addition, with the advent of the era of "disconnection and direct connection", Internet giants have been suppressed and the competition pattern of the industry has improved. After going through a strict regulatory environment, compliant enterprises will enjoy a "leftover bonus". 2) After the "96 fee reform", the profit margin of the acquiring industry has narrowed, the company has millions of merchant data resources, and SaaS value-added services have greatly improved customer stickiness and traffic value. The proportion of the company's online data risk control financial products continues to increase. After experiencing the test of extreme environment, it is expected to accelerate the volume and successfully enter the 100 billion market of financial loan assistance services. 3) With the growth of square's trading flow and the upgrading of its business model in recent years, the capital market has gradually recognized its value, supporting the value and Prospect of the data operation model.
In the era of the Internet of things, it construction is accelerated, the card position is credible, the digital identity and digital RMB open a new blue ocean. 1) With the advent of the era of global Internet of things, 5g in China began to be pre commercialized in 2018. In order to ensure "Digital China", the follow-up information infrastructure construction is expected to accelerate. "Digital China" is a new strategy for national information development in the new era, covering all fields of information construction. 2) In terms of feasible digital identity, the company and the Ministry of public security have jointly created an "Internet +" trusted identity authentication platform ("Ctid platform") to provide people with online identity card function services. The company is the core supplier of Ctid QR code chip and reading engine. It is also the core exporter of QR code technology. It is expected to dominate the blue ocean market of billions of scale. 3) In terms of digital RMB, as of June 30, 2021, the number of digital RMB pilot scenarios has exceeded 1.32 million, with a cumulative number of transactions of more than 70.75 million and an amount of about 34.5 billion yuan, basically covering daily retail payment scenarios. Since the digital RMB pilot in 2020, Newland Digital Technology Co.Ltd(000997) has undertaken to build the head office level digital RMB acceptance system of some of the first batch of pilot state-owned banks, and deeply participated in the construction of the whole scene of digital RMB acceptance of the Beijing Winter Olympics. It is the only head office level digital RMB payment acceptance system construction outsourcing service provider and core intelligent POS provider. It has advantages in industry experience and customer stickiness, Will enjoy the dividend of DCEP pilot comprehensive promotion.
"Buy" rating is given for the first time. According to key assumptions and recent announcements, it is estimated that the operating revenue from 2022 to 2024 will be RMB 9.359 billion, RMB 10.873 billion and RMB 12.269 billion respectively, and the net profit attributable to the parent company will be RMB 869 million, RMB 1.049 billion and RMB 1.220 billion respectively. For the first time, give a "buy" rating.
Risk warning: business promotion fails to meet expectations; Macroeconomic risks; The key assumptions are inconsistent with the actual situation.
