Donggang Shares (002117): Blockchain chain case helps industry development; Donggang Blockchain chain cooperation takes another city

Donggang Shares (002117): Blockchain chain case helps industry development; Donggang Blockchain chain cooperation takes another city

[Event]1) Donggang Co., Ltd. and Shenzhen One Account Smart 合肥夜网 Technology Co., Ltd. reached a “Cooperation Framework Agreement”, and will start cooperation on blockchain electronic tickets and credit products.

2) Recently, the State Cyberspace Office released the first batch of 197 domestic blockchain information service filing numbers. Donggang Strategic Cooperation Enterprise Jingtong Technology and One Account Express are listed.

[Comment]1) Realize a strong alliance with One Account.

① Financial One Account: Financial technology companies incubated by Ping An Group have provided technical services such as blockchain to 483 banks, 42 insurance companies, and nearly 2,500 non-bank financial institutions as of September 30, 2018.

② Exploiting resource advantages to expand cooperation and increase performance: First, each side has the advantages of customer accumulation and big data collection from government agencies and financial companies, and can jointly develop applicable credit products and even expand the customer base of Donggang Electronic Tickets.

Second, you can use the consumption data information to establish an analysis theme model to build a corporate portrait, provide credit-related services to small and micro enterprises, and accept service fees.

Thirdly, we can use the E-Account blockchain technology to jointly develop new products such as electronic contracts / insurance / certificates of the blockchain, and conduct blockchain + big data research to deepen the exploration of information services and provide performance flexibility.

2) The filing of the Internet Information Office promotes the standardized development of the blockchain.

① The Internet Information Office released a record list, and the development of the blockchain is on track.

In the short term, the blockchain technology market is not yet mature, and there is speculation and violations. This release can clean up the industry and support the development of valued enterprises.

In addition, the blockchain is the future direction of industrial technology. The filing reflects the encouragement of the development of the blockchain by the supervision of the record, and the cooperation application based on the blockchain is also expected to accelerate its implementation.

② Jingtong Technology Co., Ltd., an East-Hong Kong cooperative enterprise, has one account.

On January 1, 18, Donggang and Jingtong began to cooperate. Combining blockchain with electronic tickets and data services has become the company’s strategic focus. It is expected to benefit from policy dividends in the future and the profit model will become more clear.

3) Highlights in the future: ①Main business of printing: Some 18Q4 orders are postponed and confirmed. It is expected that 19Q1 revenue will improve, and the profit side will benefit from the decline in paper prices.

②New business: Smart cards continue to be put on the market, lottery sales terminals are accelerating, and archive storage profits continue to improve.

Investment rating: We estimate Donggang’s net profit for 2019-2021 3.



990,000 yuan, corresponding to PE of 26.



7 times.

The traditional main business is stable, the new business contributes flexibility, the level of dividends, and the level of strong recommendation is maintained.

Risk warning: Bill printing industry shrinks sharply, new business launches fall short of expectations