Industry Reports: from the Perspective of 2017 Annual Growth Report of Listed Companies Involved in RFID

May 23, 2018

Industry Reports: from the Perspective of 2017 Annual Growth Report of Listed Companies Involved in RFID

In the past year of 2017, the outbreak of RFID application in unmanned retail has made more people aware of the “RFID” and also allowed practitioners to expect more from the RFID market.  Then, one year has passed, what is the performance of RFID industry companies?  Is it not what we expected, we may wish to uncover the actual status of the industry development through the public annual report data of listed companies involved in RFID business? 

From the above statistics of 20 companies involved in RFID new third board data, the operating income totaled 1689 million in 2017 compared with operating income totaled 1331 million in 2016, an increase of 26.87%.  The overall revenue growth is improved, which to a certain extent shows that the market demand is growing, the market is expanding, and the RFID industry has a good opportunity. 

However, from the perspective of operating revenue, there are only four companies with hundreds of millions of companies: GSIT (413.6962 million yuan), INLAYLINK (281,866,800 yuan), HERES (10,830.95 thousand yuan), and SPEED-FIT(10,401.06 yuan).  ZTE Soft (838824) and Mester (836431), which originally had revenues of hundreds of millions in 2016, withdrew from the new board.  Most companies are still small in scale and need to continue their efforts to expand their revenue scale so that they will have more opportunities to gain capital markets. 

From the above statistics of 20 companies involved in RFID new third board data, 2017 total net profit of 136.8092 million yuan, compared with 2016 net profit total 151.6685 million yuan, net profit growth rate of -9.80%, the overall negative growth trend; more than half of corporate net Profits fell; four companies suffered losses.  This largely reflects: In the past 2017, the days of most RFID companies are not good. 

What comforts us is that there are four tens of millions of net profits: GSIT, Inlaylink, Speed-Fit and Innov.  The net profits of GIST, Speed-Fit and Innov have increased. 

From the perspective of the basic earnings per share of the new third-tier companies, there are seven growth statuses, of which the most noteworthy is Thinkgo, net income per share reached 1.23 yuan, an increase of 623.53% over the same period, and Speed-Fit, GSIT, and Innov, SmartREN and Etagrfid Technology also have different levels of earnings per share growth.  Among them, the sense of technology increased by 1500% (Note: 16 years of earnings per share of 0.03)

The decline in earnings per share of the other 13 companies in different degrees (or negative earnings per share) reflects the decline in corporate profitability to a certain extent and deserves our attention. 

Unlike the New Third Board Group, in the A-share companies (excluding the Invengo), the RFID business module accounts for a relatively small proportion of the company's overall performance, so the data is for reference only.  Therefore, take the Invengo as an example, operating revenue in 2017 achieved a slight increase of 3.12%, while the net profit fell sharply -95.77%, earnings per share also fell sharply -96.30%, worthy of everyone's attention. 

According to the statistics of the three companies involved in the RFID GEM, the total operating revenue in 2017 was 2,31,103,700 yuan, which was a total of 2,106,411,200 yuan in operating revenue in 2016.  The operating income growth rate was 9.71%, showing a growing trend;

In 2017, the total net profit was 302.4041 million yuan, which represented a total net profit of 340,395,500 yuan compared to 2016, and a net profit growth rate of -11.16%, showing a negative growth overall.  Only the new Cape net profit has a growth of 41.04%;

Earnings per share were only 32.14% for New Cape, and negative growth for the other two. 

Note: The above statistics do not fully represent the development status of all enterprises involved in RFID business.  These disclosed companies have certain representation in the industry, and many well-developed RFID companies have not been disclosed. ( for reference only)

Summary:

No matter whether it is the New Third Board, the Growth Enterprise Market, or the representative company of the A-share listed company, Invengo (the main business is related to RFID), the total operating revenue in 2017 is higher than the total operating revenue in 2016.  The overall revenue growth, which to a certain extent shows that the market demand is growing, the market space is expanding, there are good opportunities for the RFID industry. 

On the contrary, the net profit total is the opposite.  No matter whether it is the New Third Board, the Growth Enterprise Market or the representative company of the A-share listed company, Invengo there has been a downward trend! 

The overall revenue growth, net profit but decreased!  Should cause the RFID industry insiders to be vigilant and reflective.  This anomaly may be due to rising costs.  It is mainly due to the intensification of competition in the industry and the homogeneity of products.  In order to compete with the market, prices are lower and the final transaction price is low, which leads to reasonable profits cannot be guaranteed.  Take unsupervised UHF electronic tags for sale, the price has been close to the cost, and some even appear cost-inverted phenomenon.  Without a reasonable profit, how can it ensure the sustainable development of the company? 

To take this opportunity, we also called on RFID colleagues to deepen their industrial applications and technological innovations, try to avoid unstoppable price wars, ensure reasonable profits for enterprises, and jointly maintain a good industry development order, so that each RFID product has its own value. 

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