Electronic payment ushered in IC card good chip manufacturers and other industrial chain benefits

Morning News reporter Guo 珺

Recently, the central bank issued "The People's Bank of China on the promotion of the application of financial IC card", decided to officially launch a nationwide bank card chip transfer work, "Twelve-Five" period will be fully advanced financial IC card applications. Before the end of June this year, workers, farmers, China, construction, and investment, postal storage banks should start issuing financial IC card. Taking into account the large number of applications of the financial IC card, Wanguo from the benefit of the industrial chain, the financial IC card industry chain card dealers benefited first; With the increase of localization rate, the domestic chip designer will accelerate the benefit, the terminal manufacturers must upgrade to the payment platform to achieve greater development. Yesterday, the electronic payment plate contrarian strength, Heng Bao shares, Dongxin and so on are bucking the trend.

Kashang, chip manufacturers, equipment manufacturers are benefiting

In this opinion, the central bank lists the timetable for the distribution of financial IC cards and equipment updates. January 1, 2013, the national commercial banks should start to issue financial IC card, starting from January 1, 2015 in the economically developed regions and key cooperative industries, commercial banks issued by the renminbi to settle accounts of the bank cards should be financial IC card.

June 2011 at the end of the direct-linked POS (UnionPay point point-of-sale terminal) to accept the Financial IC card, National Commercial Bank distribution of the Inter-Union POS (POS Machine for commercial banks) and ATM (ATMs) of the processing of financial IC card at the end of 2011 and 2012, respectively, 2013 since the realization of all the Bank card processing network Universal terminals can accept the financial IC card.

Taking into account the financial IC card in the process of replacement, the card business due to enjoy relatively fixed institutional dividend, it will directly benefit from the Financial IC card upgrade. Magnetic stripe card Period of four Kcal Shanghengbao, Kimbunda, Beijing in the banknotes, de accounted for about 90% of the share, industrial value chain accounted for 30% to 40%. Due to the institutional relationship, domestic card business gross margin is basically stable in 40% to 50%, the cost is very transparent, so the only variable is the share. Wanguo analysis of several major traditional card business share will be close to the pattern of the magnetic stripe card period, the biggest variable may be the peace of East letter into the positive. Eastcom is currently the only partner for UnionPay's next-generation electronic Payment platform (N3), a strategic move to jump out of the traditional card-maker's capacity, a partnership that could give it a 10% or even more share in the future.

Leading companies are expected to benefit first

The future most benefit should be chip manufacturers Datang Microelectronics, Shanghai Fudan and so on. At present, the core competitiveness of chip design is not only the performance, but also the solution. Specific to the Financial IC card upgrade, in addition to security and other performance indicators, whether with small payments, social security, health care, public transport and so on, to become consumers quickly accept the key factors of financial IC card, and domestic chip manufacturers in the field of industry applications have a clear comparative advantage. Short-term domestic chip manufacturers can not account for the dominant share, but within 3-5 years will inevitably achieve domestic.

2008 after the POS machine with IC card slots, if you want to support the financial IC card, you need to add 180 to 220 yuan reading head, ATM machine read the head should be 300 to 500 yuan. The value chain accounted for no more than 20%. IC upgrade on the South day, pass, new countries, Newland, such as POS machines and radio and Television Express, Royal Silver and other AMT machine manufacturers have little impact. Considering that UnionPay is the biggest catalyst for financial ICS, so UnionPay's largest supplier of new countries will benefit more, and the company has announced to the subsidiary of the new country software to apply for Third-party Electronic Payment license, with its good cooperative relations with UnionPay, access to licences is a big probability event, which has a direct effect on the company's valuation.

Wanguo's research report calculates, has considered the product average gross profit rate, in accordance with 18 yuan/Zhang Jun Price, each 10 million IC card shipments to the East letter peace contribution 0.25 yuan/shares, to Heng Bao 0.14 yuan/stock; Each 10 million IC card chip shipments to the Crystal source electronic contribution 0.10 yuan/share, to Datang Telecom contribution 0.05 yuan/share, to Shanghai Fudan contribution 0.10 yuan/share, according to 0.5% of the handling fee and 60% of the proportion, each 1000 sets of independent-laying POS machine to the new countries contribute 0.18 yuan/share.