Zhongke Financial

Target logic: The big bull stocks in the past have fallen sharply for six years, and their market value has dropped by more than 90%. Peer companies that are also in the data security business have valuations in the tens of billions and price-to-book ratios of more than 7 times. Zhongke Financial currently has a market value of only 4.2 billion and a price-to-book ratio of 1.9 times. Recently, the bottom has exploded, with continuous positive lines. After a huge amount of positive news, it has shown a 60-degree upward attack, and the quarterly line is about to reach a golden cross.

The company mainly provides financial technology, comprehensive data center services, information innovation and other services to customers in financial institutions, governments, public utilities, enterprises and other fields, and continues to deploy innovative technologies and services such as blockchain and privacy computing. Application research and development and reserve. The company has obtained more than 20 privacy computing patents and more than 20 blockchain technology patents. The company's business also includes data center system integration, technical services and software product development. The company is experimenting with technological applications, scenario expansion, and operational services of digital currency.

Blockchain: The president unit of Beijing Blockchain Technology Application Association; Zhongke Finance has made great achievements in how to turn original accounting vouchers and legal contracts into effective and credible electronic vouchers and electronic contracts. It has a certain technical accumulation and practical foundation; currently, more than 60% of domestic banks provide technical support for converting original bills to electronic bills by Zhongke Financial. As the saying goes, the core of those who work in IT is actually sales ability, and wide customer coverage is a major advantage.

2. Industrial digitalization:

Industrial digitalization is actually the industrial Internet and data governance. The concept is very broad and the segmentation is very complex. Carefully divided, it can be divided into management end, business end and cloud end. According to industry, government (smart government, smart city), financial institutions (smart finance, open banking), electric power (ubiquitous power, smart grid, virtual power plant), Internet of Vehicles, smart medical, automated digitalization of manufacturing, etc. .

In terms of advancement difficulty, manufacturing should be the most difficult. The easiest thing to promote is the government, followed by financial institutions, and then electric vehicle connected medical care, etc. The country needs pillars for city gates and trees for trust, so naturally it is necessary to be at the forefront and be the vanguard. Secondly, the digitization of the service industry is conducive to reducing people and increasing profits and improving service standards, and it also has great initiative. The manufacturing industry, especially the small and medium-sized manufacturing industry, should be a difficult area to advance. Among the software categories, management OA office and HR systems should be easiest to use online and cloud due to their low cost and high versatility, but industrial enterprise management software may have the biggest difference in expectations. The software and hardware of the Industrial Internet are difficult to develop, highly customized, costly, and difficult to promote.

Huawei is a pioneer in the industrial Internet. It has established the Coal Mine Corps, the Smart Highway Corps, the Customs and Port Corps, the Smart Photovoltaic Corps, and the Data Center Energy Corps, and is also involved in smart mines and smart education. Software and hardware companies that cooperate with Huawei will have many opportunities.

The main targets of smart banks and open banks: Xinyada

Target logic: The big bull stocks in the past have fallen sharply for six years, and their market value has dropped by more than 90%. Ranked 23rd in decline among A-shares. The current market value is 4.9 billion, with a price-to-sales ratio of 3.91 times. There was an explosion of volume at the bottom in September, with continuous positive lines. After the huge positive volume, it showed a 60-degree upward attack and started a wave of big market trends. The current quarterly line is golden cross. This stock belongs to the core target of financial technology. The company's main business is to provide end-to-end professional solutions and products for financial institutions mainly in the banking industry. Its customers cover 90% of banks nationwide.

Join hands with Shunyun Internet to build a brain supply chain financial platform for the motor industry. Since 2021, the company's process bus, intelligent customer service and other key products are gradually promoting in-depth scenario adaptation and compatibility and mutual recognition with Huawei and other companies to accelerate the domestic, independent and controllable support of the company's current full-stack financial technology products. The company has developed a credit big data platform and a citizen credit management system V1.0. The citizen credit management system V1.0 has been successfully applied to Xiamen All-in-One Card. Xinyada's national secret system has achieved great results again. The national secret algorithm is the content of digital security certification.

Smart city target: CLP Xingfa

Target logic: It has fallen by 80% in 6 years, and the current price-to-book ratio is 1.18. The price-to-sales ratio is 2.17, and the price-to-earnings ratio is 33.86, extremely underestimate. Beginning in November, the high-volume positive line gradually moved upward at 45 degrees. The monthly MACD is about to cross golden.

China Electronics Xingfa subsidiary has strategic cooperation with Huawei.

The company's main business is smart cities, accounting for 73% of its business, and it has penetrated into big data. At present, the China Unicom Big Data Center Project of the Aviation Industry Cloud Base has been formally signed. Based on the cases of smart cities that are already under construction or will participate in the construction, the scale of smart city construction in counties, county-level cities, and prefecture-level cities (including their respective districts) is estimated, and the national smart cities The construction scale and capacity exceeds one trillion yuan, and the space is very large. In terms of business development, based on the "Nine A" qualification advantage, the company proposed to promote the PPP + EPC project model in the field of smart administrative areas, and won many large orders in the first half of the year.

In terms of technology research and development, the comprehensive video management platform V1.0 independently developed by China Electronics Xingfa has completed compatibility testing with Huawei Technologies Co., Ltd. TaiShan100, Unison server operating system and UnionTech desktop operating system V20. . The company's comprehensive video management platform V1.0 has successively completed the compatibility and adaptation of domestic hardware platforms such as Loongson and HiSilicon and domestic software operating systems such as Unison UOS and Winning Kirin, which can fully meet the localization market requirements of Smart China business.

The performance is also good, and the performance is turning around. Smart Medical + Internet of Vehicles Target: Neusoft Group

Target logic: It has been oversold for 6 years and has lost more than 70% of its market value. The current price-to-book ratio is 1.80 and the price-to-sales ratio is 202, ranking last in the software industry. The current market value is 15.3 billion, which is greatly underestimated compared with its peers. In November, it began to explode and showed a 60-degree graphic upward attack. The quarterly MACD is about to cross golden.

The company is a leader in medical informatization and automobile intelligence. Neusoft Group just clicks on the calculator and the overall reasonable valuation is more than 80 billion, with room for growth of 7 times.

It is worthy of medium and long-term layout. The company is mainly divided into three sectors: smart medical, automotive technology and investment. Regarding smart medical care, the revenue is basically the same as that of the industry leader. Referring to the valuation of Weining Health, the estimated valuation is 30 billion yuan.

Regarding automotive technology and Internet of Vehicles, according to Desay SV’s valuation of 70 billion, the industry valuation based on the current revenue scale is about 35 billion. Regarding the investment joint venture, four unicorns are valued at 10 billion each, and based on 30% of the shares, it is conservatively 12 billion.

Of course, the growth rate may be slightly inferior to that of the reference target, but after all, where is the volume? Can it be 4 times the space with a slight discount?

Smart grid target: Science, Engineering and Environmental Science

Target logic: It has been oversold for 6 years and has lost more than 60% of its market value. The current price-to-earnings ratio is 25 times and the price-to-book ratio is 1.84, ranking low in the software industry. In November, the Yang line began to line up, and after the earth exploded, it led a 60-degree upward attack, which was the MACD quarterly golden cross. However, in the short term, because the concept of smart grid has increased a lot, it is recommended to observe first and keep the probability of victory or defeat in mind.

The company is a leading enterprise in the field of power engineering informatization, a leading manufacturer of surface water quality monitoring equipment and operation and maintenance in the country, and a pioneer and promoter of the domestic power equipment online monitoring industry. The company's core product is the transformer chromatography online monitoring system (MGA), which can realize online monitoring and fault diagnosis of dissolved gases in power transformer oil. It is mainly used in power transformers of 110kV and above in power grid companies, power generation companies and large power users; A total of more than 1,500 sets of MGA have been sold, with a market share of about 50% above 110kV, ranking first.

In recent years, the company's subsidiary Jiangxi Bowei New Technology has targeted the digitalization of the energy industry. Based on independent three-dimensional platform technology and supported by BIM+.AI+VR+Internet of Things, it is basically equipped to build digitalization in the energy industry. Twin’s technical application and scene implementation capabilities. A digital twin business line focusing on the construction and operation processes of power transmission, transformation and distribution projects has been initially formed.

It is mainly used in digital construction sites, auxiliary construction and auxiliary design. The company cooperates with Huawei to jointly create an industrial ecological strategy.

Industrial Internet target: Hande Information

Target logic: oversold for 6 years. It has lost 80% of its market value. The current price-to-earnings ratio is 2.36 and the price-to-sales ratio is 2.77. Ranked low in the software industry,

relatively undervalued. In November, it began to move upward with volume, with divergence at the weekly level and consolidation and divergence at the monthly level. As companies that are almost the same generation as UFIDA, one has a market value of 110 billion and the other has a market value of just over 7 billion just because they have chosen different paths. Just because of the different business models. UFIDA relies on office OA and HR systems to grow and develop, while Hande sticks to ERP. The wind of the times is coming. In the deep water area of ??enterprise digitalization, enterprise resource management, and process control, this time it is Hande's turn.

Hande spent five years sharpening his sword and devoted himself continuously to training in the middle stage, and it immediately bore fruit.

The company is the largest ERP company in China. The company is one of the earliest professional consulting companies in China engaged in high-end ERP implementation services. The company has currently provided C-side business transformation and tool support for a large number of corporate customers (such as Sophia Home Furnishing, Tsingtao Beer, Lingzhi Clothing), and at the same time in B The terminal and M terminal also provide more integration solutions and product implementations for enterprise users (such as Fuyao Glass, Huizhong Automobile, and Highly Compressor). It was announced on November 13 that Hande Information plans to introduce strategic investment into Zhenyun Information and its shareholding ratio will be reduced to 19.7564%. The introduction of this investor will inject new power into the development of Zhenyun Information. In March 2019, a strategic cooperation agreement was signed with Baidu. At the same time, Baidu planned to receive 5.26% of the shares transferred by the controlling shareholder and become a strategic investor. The company has started to provide internal incentives, with the goal of profit performance reaching 120% within three years.

3. Central Bank Digital Currency: Needless to say, there is no need to say more about the opportunities of central bank digital currency (DECP). Digital currency is currently increasing the scope of pilot projects.

The Winter Olympics will showcase China’s digital currency technology to the world. This is a major node. Digital currency involves a lot of software and hardware.

Mainly in the following aspects:

Software, such as systems, tool software, identity authentication, security protection, etc.

There are many targets, but the value is actually not large, mainly concepts.

Equipment terminals: The bank's machines and equipment need to be updated, and the company's collection equipment also needs to be updated, and the value is relatively large. The explosive power is relatively strong. For example, bank ATMs and smart machines need to be replaced or upgraded.

Personal hard wallet software package: Soft wallet is software with low value. The hard wallet volume is relatively large and the explosive power is relatively strong. Such as chip cards, SIM cards, Internet of Things devices, special-shaped cards, etc.

Also mention that which digital currencies are actually a long-term negative for which acquiring companies, but are good for POS manufacturers. The hardware terminals of digital currency include hard wallets, and the most important thing is chips. Security needs must be domestic chips.

It is hard to say when digital currency will be fully implemented. After all, it involves a total of 1.4 billion people, and there cannot be any errors or bugs, so it must be a gradual promotion process.

But it is certain that the benefits of expanding the pilot program will come one after another. The current RMB is about 330 trillion. Even if digital currency replaces half of it, it will still be a huge demand for software and hardware updates in the whole society.

Based on current simple conservative calculations with a 30% discount, the upgrade of the digital RMB software and hardware industry will bring 140 billion market space, including 5.1 billion for bank core system transformation, 33.9 billion for digital RMB hard wallets, and 507 for ATM upgrades. 32.3 billion to upgrade smart counter card issuing machines, 19.2 billion to upgrade merchant POS equipment, and the market space is vast.

Because at present, the major research institutions, whether they are securities firms or funds, are basically ignorant of the increase in digital currency. They only stay on the concept of hot spots, and few do quantitative analysis. Therefore, the number reported in this research is a very conservative estimate.

According to Murphy's Law, the actual cost will always far exceed the initial estimate. I estimate that the actual cost will be far more than this number.

Considering that the companies that provide services are basically small and medium-sized enterprises, their contribution to flexible space must be very considerable.

Hard wallet card material target: Huaxin New Materials

Target logic: price-to-book ratio of 2.66, market value of 1.6 billion. The overall valuation is relatively low, and the current stock price is also at the floor price since its listing in 2018. On the graph, it is MACD weekly and monthly golden cross.

Because card issuance has little to do with the economy, this company’s business is not cyclical, so the digital currency era gave him an extra large gold pie.

For digital currency, in fact, the most flexible one is the hard wallet. Currently, an average of 380 million cards are issued nationwide a year. If the digital currency promotion is completed, it is estimated that at least 2.4 billion cards will be issued (super SIM cards, screen graphics cards, and special-shaped cards combined). That’s 6.5 times the space.

Among the A-shares, only Huaxin New Materials Co., Ltd. is the supplier, which is in a monopoly position. In the market, it is represented by Eastcom Peace, Chu Tianlong, Hengbao Co., Ltd., Tianyu Information, Goldpac, and Donggang Co., Ltd. Listed card companies are all his customers.

The production capacity of card materials is extremely limited, so it is foreseeable that the supply of card materials will exceed the demand in the next year and the volume and price will rise. 1.6 billion market value to get 8 billion? Is that okay? I think you can let your imagination run wild.

Smart banking machine target: Guangdian Express

Target logic: The valuation has dropped by half after 2015, with a price-to-book ratio of 2.72 and a price-to-earnings ratio of 34.76. It is relatively undervalued. The bullish moving average has been attacking since November. It is a proper mid-cap institutional ticket. The arrival of the digital currency era will lead to a large number of financial outlet payment equipment and business equipment updates. The company is the absolute leader in bank intelligent machines. I will not introduce its business in detail. If you don’t understand, check it out. It is actively embracing digital currency. The People’s Bank of China’s digital currency A key cooperative unit of the institute, its digital currency wallet has been tested in payment scenarios such as gates and vending machines.

The credit card machine for the Winter Olympics was provided by him. Its subsidiary Zhongke Jiangnan is very good. All banks must be connected to its system, and each bank must pay usage fees according to the branch interface. In addition, data center business has also been launched. It can be said that he is at the forefront of domestic digital currencies and has the deepest cooperation with officials and banks. According to elasticity estimates in the digital currency era, the number of equipment replacements may be roughly 8 times the constant.

Card trademark: Eastcom Peace

Target logic: The leader among card vendors, screen graphics card and super SIM card. A subsidiary of China Electronics Technology Group Co., Ltd., the ultimate actual controller is China Electronics Technology Group Co., Ltd., covering smart card products and digital identity security products in financial services, mobile communications, government agencies, consumer electronics, industrial Internet of Things, Internet of Vehicles and other application fields. .

Smart card business: The main products in mobile communications are M2M, NFC-SIM, USIM, etc., and the main business targets are telecom operators; the main products in financial payment are financial IC cards, including industry technology cards, innovative Craft cards, high-end customized cards, etc., the main business objects are banks and other financial institutions; the main products for government and public institutions are ID cards, social security cards, electronic passports, and ETC charge cards. Digital identity security products: taking advantage of digital identity recognition and data security technology, focusing on the Internet of Things and information security industry, and providing digital identity security modules (eSIM, eSE, RFID products) and digital security management solutions to the market; main projects include: Vertical industry security chip projects, IoT sensor label projects, mobile card writing system business, digital security platform RSP platform business, etc.

The company has patents for digital currency wallet hard wallets and digital currency key data devices. These two patents are the company’s technical reserves for digital currency security management. The company also has the subject of restructuring of China Electronics Technology Group Co., Ltd.

4. Other opportunities

Creating new advantages in the digital economy is inseparable from a complete digital infrastructure.

Basic hardware facilities such as cables, optical fibers, sensors, computing power (such as DPU), data centers, etc. will also be greatly accelerated, and related targets will also benefit greatly.

In addition, the state’s support for small and medium-sized technological innovation service enterprises, which are the main body of the digital economy, will only increase, and more capital markets will be used to help these enterprises become bigger and stronger. In recent years, we will see Many small and medium-sized technology innovation service companies in the digital economy are listed on the Beijing Stock Exchange. Therefore, venture capital companies that have invested in more small and medium-sized technological and innovative service-oriented enterprises in the digital economy will also benefit greatly.

Optical fiber target: Tongding Internet

Target logic: It has been oversold for more than 6 years, and the stock price has fallen by more than 80%. The current price-to-book ratio is 2.37 and the price-to-sales ratio is 2.32. Both are significantly lower than peers. In recent days, the bottom volume has begun to rise at a 45-degree angle, and the quarter is about to reach a golden cross. The optical fiber industry was in decline in the past few years, but now it has reversed. China Mobile's tens of billions-level centralized procurement average price has increased by 30% compared with last year. Through industrial research, we also know that the optical fiber industry has indeed reversed. Some companies The sales manager said that he has never seen the fiber optic market as hot as now.

The company also has a cable business. In fact, due to the power transformation, the cable business is also booming.

Optical module target: Zhongji InnoLight

Target logic: The valuation is at the absolute bottom, the leading brother of optical modules. The golden cross is coming soon.

Computing power target: Zuojiang Technology

Target logic: The graph is on the rise, which is the first divergence. Accelerated DPU for network big data scenarios. Provides computing engines for high-bandwidth, low-latency, and data-intensive computing scenarios. It is a waste of CPU performance for the CPU to process the data flowing through the network card. The future trend is to build a chip DPU that specifically processes the data flowing through the network card, just like the image data is handed over to the GPU. Computing power DPU is the core of the digital economy era and has epoch-making significance.

Whether it is industrial digitization or the Metaverse, etc., they all require huge computing power support. Some research institutions have stated that the demand for computing power will increase a thousand times. The company's DPU products will be tape-out in the second half of next year, and the company's other business is network security chips. Referring to the current market value of listed chip companies, which are often in the tens of billions, Zuojiang Technology currently has a market value of 6.9 billion. There is not a lot of room for flexibility.