China's pos machine per capita coverage is less than 1/8 of developed countries

New Country's pos machine sales revenue will maintain a 50% compound growth in the next five years. The per capita coverage and merchant coverage of POS machines in developed countries are about 8 times that of China. Due to the large number of bank cards, the lowering of POS machine deployment costs, and the enthusiasm of the acquiring institutions and third-party acquiring service organizations. Driven by factors such as mobile payment and EMV migration, the POS industry will maintain a 40% compound growth. The company has the advantages of technology, cost and management, and will have a higher growth rate than the industry average.

Risk warning: 1. The risk of POS development is lower than expected; 2. The risk of rapid decline in POS unit price; 3. The risk of new service company's service industry is less than expected; 4. The risk that VAT discount can not continue to enjoy.

Earnings forecast and valuation analysis. Under the assumption of high-speed growth of the POS industry in the past, even if the company's revenue in the service industry is not calculated, the company's operating income will be six times that of the current five years. Considering the scale effect, the net profit will be more than 6 times now. . The company's current share price is 43.96 yuan, corresponding to 2010-2012 PE is 46 times / 30 times / 21 times, the value is underestimated. We correspond to the 2011 P/E ratio of 38, giving the company a target price of 55 yuan, the first buy rating. (Debon Securities)

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Shaoxing Haotuo Machinery CO., LTD. , https://hotochainsaw.com