EMPTECH(300546) 东吴证券·2024-12-02 03:33Investment Rating - The report assigns a "Buy" rating for the company, Xiongdi Technology, as it is recognized as a leading provider of trusted digital identity products and services in the global market [1][4]. Core Insights - Xiongdi Technology focuses on providing identity recognition and management solutions for government, institutions, and enterprises, with a strong emphasis on physical anti-counterfeiting, digital security, and biometric technologies [2][28]. - The company has successfully implemented trusted identity projects in over 50 countries, particularly making significant progress in the African market, which has a growing demand for trusted identity documents [4][76]. - The report highlights the company's robust growth potential, driven by its comprehensive service capabilities and innovative technologies, which have established a strong competitive moat in the trusted identity document production sector [3][70]. Summary by Sections 1. Leading Enterprise in Trusted Identity Recognition and Management - Xiongdi Technology has evolved from a smart card equipment supplier to a comprehensive service provider in identity recognition technology, with significant achievements in the field [30]. - The company has a clear ownership structure, with the majority of shares held by the founder and her son, ensuring strong leadership and strategic direction [35][36]. - The core business strategy revolves around trusted identity development, focusing on comprehensive solutions in smart governance and smart transportation [37]. 2. Competitive Advantages and Market Expansion - The uniqueness of identity is emphasized as a foundational element for modern trust systems, with Xiongdi Technology positioned in the certificate production and issuance segment of the trusted identity value chain [62][64]. - The company has established a strong technological edge and first-mover advantage in the secure document production sector, supported by its proprietary MLP anti-counterfeiting technology [70][75]. - Domestic demand for passports is increasing significantly, with the company poised to benefit from the recovery in outbound travel and the growing need for identity documents [76]. 3. Financial Performance and Forecast - The company has experienced a rebound in revenue and profit growth, with expectations for continued improvement in net profit from 0.20 billion CNY in 2024 to 1.84 billion CNY in 2026 [1][4]. - The report forecasts a stable gross margin around 50%, with net profit margins expected to rebound as the company continues to invest in research and development [49][55]. - The stock is currently valued at a P/E ratio of 176.77 for 2024, decreasing to 18.86 by 2026, indicating potential for price appreciation [1][4].