NEWLAND(SZ:000997) Haitong Securities·2024-03-17 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company is a leader in the smart terminal and acquiring industry, providing comprehensive digital solutions that integrate hardware, software, and data operations, with a focus on government, industry, and enterprise needs [3][8] - The upward trend in acquiring fees is anticipated, driven by regulatory changes and the need for compliance, which may lead to increased costs for acquiring institutions [3][8] - The company has accelerated its overseas localization strategy, achieving the highest global shipment volume of payment devices in 2022, with overseas revenue accounting for 74% of total income in the first three quarters of 2023 [3][8] - The company is actively involved in the digital RMB ecosystem and embraces open-source technologies, enhancing its market position and innovation capabilities [3][8] - Profit forecasts indicate significant growth, with expected net profits of 1.006 billion, 1.255 billion, and 1.507 billion yuan for 2023, 2024, and 2025 respectively, reflecting year-on-year growth rates of 363.5%, 24.8%, and 20.1% [3][8] Summary by Sections Company Overview - The company focuses on digital governance and has established a strong presence in over 100 countries, providing digital transformation solutions [3][8] - It has a robust R&D capability, with significant investments in technology and product innovation, including the development of proprietary chips and software [3][8] Financial Performance - The company's revenue for 2023 is projected to be 8.546 billion yuan, with a year-on-year growth of 16% [4] - The net profit for 2023 is expected to be 1.006 billion yuan, a significant recovery from a loss in 2022 [4] - The company has maintained a gross margin of approximately 36.2% for 2024, indicating strong profitability [4] Market Position - The company has achieved a market share of 8.3% in the global POS device market, ranking first in shipments [3][8] - The digital payment terminal market is expanding, with a notable shift towards non-cash payment methods globally [3][8] Strategic Initiatives - The company is enhancing its service capabilities through partnerships and local operations in key international markets [3][8] - It is also focusing on integrating digital RMB initiatives into its business model, which is expected to create new growth opportunities [3][8]