Tongfang Guoxin IC Card Chip First Obtained Certification

In 2012, Tongxin Guomin (002049), which acquired Tongfang Microelectronics and China Microelectronics, completed its restructuring and became a leading company in the integrated circuit design industry. The company announced on May 3 that its wholly-owned subsidiary, Tongfang Microelectronics, has obtained a CUP card chip product safety certification certificate. This shows that Tongfang Microelectronics has the production qualification of the UnionPay card chip product, and the THD86 chip has become the first dual-interface CPU card chip product that China UnionPay has allowed for the UnionPay chip card. The certificate is valid for three years from April 26, 2013 to April 25, 2016.

Localization of Financial IC Cards Brings Huge Business Opportunities

Nowadays, the migration of bank magnetic cards to chip cards is a general trend. According to the latest news from UnionPay, from January 1, 2013, national commercial banks should begin to issue financial IC cards; from January 1, 2015 onwards, In key cooperation industries, bank cards issued by commercial banks and using RMB as the settlement account shall be financial IC cards.

In June 2012, at the national financial IC card work conference, ICBC, Construction Bank, Agricultural Bank, Bank of China, Bank of Communications, Postal Savings Bank and China Merchants Bank (600036, stocks) and other seven banks issued financial IC cards. Accounted for 15% of the new card issuance in 2012; this time the central bank required financial institutions to increase the total number of new issuances of financial IC cards by 30% in 2013, and the ratio of issuance of financial IC cards doubled, Cinda Securities It is estimated that the cumulative amount of financial IC card will exceed 300 million in 2013. By the year 2015, cumulative distribution will exceed 1 billion, and the market size of domestic chips will reach 1.7 billion yuan. From the point of view of the entire manufacturing process of financial IC cards, the chip is the most central link. Based on the consideration of the security of the financial system, the use of domestically produced chips is highly desirable. In this way, several major chip manufacturers, including domestic listed companies Datang Telecom, Jingyuan Electronics, and National Technology (300077, stocks), will obviously benefit.

In the industry standing leading advantage

Tongfang SMIC's subsidiary Tongfang Microelectronics is dedicated to the research and development and sales of smart card chips. The product line covers application areas such as identification, financial payment, mobile communications, and information security. It is widely used in SIM cards, bus cards, financial IC cards, and social security cards. , small payment cards, meter cards, USBKEY, trusted computing, non-contact reading and writing tools. It is reported that the residents' health card market is currently in its infancy. The company's chips have been applied to residents' health cards formally issued in Jiangsu, Liaoning, Hubei and Sichuan, and have achieved leading advantages. In addition, the company has made breakthroughs in the market development of social insurance cards, bus cards, and readers. The social security card chip won two provincial applications and it has begun to enter the market; bus card chip shipments continue to grow. Xiangcai Securities expects that 2013 will be the first year of the company's future growth. Financial IC cards, health cards, and mobile payment chip businesses will all begin to face the outbreak of the first year.

Tongfang Guoxin was able to obtain the CUP card chip product safety certification certificate. The first step was to pass the inspection of the National Testing Center. At present, there are four companies in China that have passed the test and certification, namely Tongfang Microelectronics, CEC Huada, National Technology and Shanghai Huahong. The only companies that have obtained the CUP card chip product safety certification certificate are Tongfang Guoxin and China Power Huada.

It is worth noting that in the first quarter of this year, the revenue per share of Tongfang Guoxin was 0.1368 yuan, which is also more prominent in the financial IC card chip chip company Datang Telecom and national technology, earnings per share were only -0.1612 yuan, 0.0200 yuan. At the same time, Tongfang Guoxin reported that its January-June 2013 net profit range from 83.84% to 124.69%, and net profit range from 90 million yuan to 110 million yuan.

Strengthen the leading position

The Microelectronics acquired by the company at the end of last year has a leading market position in the field of special integrated circuit design. It is mainly engaged in the R&D, production and sales of special integrated circuit products, providing customers with independent research and development of integrated circuit products and system solutions, and also providing commissioned design services for customers. Through years of operation and R&D accumulation in the special integrated circuit industry, SMIC has entered product catalogs for a number of key projects and has established good long-term relationships with key customers such as aviation, aerospace, marine and electronic technology groups. Accumulated deep customer channel resources, created a good brand and reputation, has become a qualified supplier of the aforementioned key equipment group and backbone factory. Through the acquisition of companies to quickly enter the field of special integrated circuits to further enhance the competitive advantage in the field of integrated circuits.

The company has also been recognized in the secondary market, from the end of last year's 17.54 yuan / share, has been steadily higher, has reached 32.22 yuan / share recently, a quarterly report in the new two investment funds, the cumulative distribution of the top ten shareholders It holds 30,454,800 shares, accounting for 32.75% of the outstanding shares.