Per AI Express, on January 1, 2024, Guotai Junan released a research report commenting on Tongbao (301339).
Investment Highlights: Initial coverage, "Overweight" rating, target price of 27$18. The company is a leader in ETC operations and data elements. The EPS for 2023-2025 is expected to be$94. Taking into account the average value of PE and PB valuation methods, the company's target price is 2718 yuan, corresponding to 37 in 202483 times PE, first coverage, "overweight" rating.
ETC issuance and charging is a solid foundation for the company. The company is the issuer of Jiangsu State-owned Assets Holding ETC, and its ETC business mainly includes issuance and clearing. Among them, the issuance of ETC has entered a period of stable development after the rapid increase in the penetration rate catalyzed by the policy in 2019, and the future increment is related to new car sales and second-hand car transaction volume, etc20 may become an upward momentum. The business model of ETC clearing and charging service fees is stable, with almost no marginal costs, and it is the company's stable cash flow**.
Software development and derivative business are the main growth points of the company. The company's main growth points are software development business and ETC derivative business. Software development has grown rapidly in the province relying on a strong state-owned background, and projects outside the province continue to land. The derivative business also revolves around ETC, and the current truck ETC scenario is the most potential growth point. It is expected that the software development and spin-off business will contribute to the company's continued business growth in the future.
The company's traffic data elements are expected to be revalued. On December 15, the country issued the "Three-Year Action Plan for "Data Elements" (2024-2026) (Draft for Comments), which specifically mentions transportation and smart cities. As an ETC operator, the company has 2305 ETC users80,000, the user coverage area has spread to 30 provinces and cities across the country, accumulating a large number of traffic data elements, and there is great imagination in the field of data element monetization in the future.
Risk warning: The progress of the data element policy is not as expected;Policy Risks;Business outside the province was blocked.
*: Huibo Investment Research).
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk.
Edited by Tsang Kin-fai).
National Business Daily.