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Changjiang Securities
New Beiyang : Strategic investment varieties that can achieve long-term sustainable growth.
As an indispensable output/input mode in the trend of information technology in which machines replace people, special printing/scanning will continue to emerge in various fields with specific application needs. Its market space is large and industrial development can be seen far ahead; New Beiyang is the only manufacturer in China that has mastered the core technology of dedicated printing/scanning. It has opened up and monopolized emerging incremental markets through continuous product innovation, while undertaking the global expansion of European and American manufacturers' capacity transfer. Its long-term development prospects are very promising, so it can be used as a strategic investment product.
Rely on core technology and advanced management mechanism to carry out product innovation and global expansion.
The core competitiveness of New Beiyang is reflected in two aspects: first, it is the only company in China that has key components of dedicated printing/scanning equipment, TPH, and high-speed color CIS core technology. Second, by introducing advanced IPD R&D management mechanism, on the one hand, the product innovation cycle has been significantly shortened; On the other hand, the process product R&D mode makes it difficult for R&D achievements to be copied by competitors. Based on this, the company has formed two very clear growth paths: first, product innovation is carried out according to the specific needs of each industry, so as to open up new incremental markets, and occupy most of the markets by virtue of technical barriers and first entry advantages, even forming a monopoly; Second, relying on technical strength and cost advantages, we will undertake ODM orders from overseas major customers, increase our own brand sales and expand our global share. At present, the share of New Beiyang in the global market is only about 1%, but this also means that there is huge room for improvement. In the long run, the company size may grow several times.
The existing product market space is still broad, and the short-term performance is high.
In the short term, the company's existing main product lines, such as ID card copiers, check scanners, embedded printers, and the soon to be launched banknote readers, have a total market space of at least billions. While New Beiyang is almost in a monopoly position in the ID card copier market, it has obvious cost advantages over foreign manufacturers in the check scanner market, and is the only domestic supplier in the embedded printer and currency reader market. Therefore, we believe that only the company's existing product line can guarantee the high growth of performance in the next two years.
