The pos machine industry has maintained a compound growth rate of 43% in the past 8 years, and the gross profit margin has remained at 40-50%. Such a high-growth and high-margin industry has long been monopolized by more than 80% of the market by five companies. We guess There must be a deep moat in the industry. After research, the combination of bidding qualification, technical barriers and qualification certification is the moat of the POS machine industry, which guarantees the high profit margin of the oligopoly in the industry. The new country as an oligopoly will benefit from the rapid development of the POS industry. And the high profit margin of the POS industry.
Investment points:
Barriers to the qualification of industry bidding. For reasons of safety and conversion costs, China UnionPay and Commercial Bank have established strict bidding qualifications to keep new entrants out. Technical barriers to the industry. POS machines have technical requirements such as automatic destruction, encryption algorithms and key systems, and individualized requirements. For new entrants, it is difficult to master the above financial security requirements.
Industry qualification barriers. The POS industry has a strict qualification system. For example, PCI certification takes about one year. The company's competitive advantage: The company has the technological advantages of the Linux operating system, management team advantages and R & D team advantages, these advantages will ensure that the company has a higher gross profit margin. Risk warning: 1. The risk of emerging payment methods affecting the POS industry; 2. The risk of declining industry growth rate; 3. The risk of uncertain VAT refund amount for the whole year. Earnings forecast and valuation analysis. The current share price of the company is 20.59 yuan, corresponding to 31/21/14 times of PE in 2011-2013, and the value is underestimated. We correspond to the 2011 price-earnings ratio of 39 times, giving the company a target price of 25.70 yuan, maintaining a buy rating.
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