Taking security RFID as a clue

Foreword: In 2011 Shenzhen AMB had just ended. According to the site's understanding, security giants are accelerating the layout of the Internet of Things. Recently, the "2010-2011 China Internet of Things Development Annual Report" was released. The report shows that the market size of China's Internet of Things industry will reach 230 billion yuan this year, an increase of 24% over the previous year. The report believes that the three major areas of security, transportation and medical care are expected to take the lead in the development of the Internet of Things, becoming the largest and most significant growth area for the Internet of Things industry.

The Internet of Things welcomes a compound annual growth rate of 30% According to the plan, the Internet of Things is an important part of the “12th Five-Year Plan” strategic emerging industry, and policy support and technological advancement have driven the rapid development of the industry. It is estimated that by 2015, the total output value of the domestic IoT industry will reach 750 billion yuan, with an average compound growth rate exceeding 30%. Intelligent transportation, video security, and smart grid are the mature applications of the Internet of Things. Currently, the industry is relatively decentralized and the competition is relatively full. In order to promote the development of the Internet of Things in new areas such as smart logistics, product traceability, mobile payment, and environmental monitoring, the state set up a specialized agency to formulate and improve industry standards, and companies are actively seeking out replicable and mature business models. With points and areas, broadening the application is the development trend of the industry. Currently, the Internet of Things industry is mainly based on closed-loop applications. Unification of industry standards can bring together related application areas, and enterprises establish standard interfaces to share resources. On this basis, the industry will transition from public and commercial use to a larger civilian market.

Taking security RFID as a clue, the strong development of the Internet of Things Shennong Securities analyst Jangdang told reporters in an interview that the recent “IoT concept” secondary speculation was caused by the lack of mainstream market leading shares, so there is no mainstream situation. The compensatory growth speculation of the theme stocks became the current hot spot. In his opinion, the current hype for stocks has reached a peak. However, judging from the emerging concept, this concept of "Internet of Things" is very practical and the scope of application is also very wide. If it is really implemented, it is believed that many listed companies can benefit from it.

From the recent strong IoT individual stocks, almost all of them have radio frequency identification (RFID) clues. Van Ge suggested that the downstream can focus on new applications with operational feasibility and market space. Focusing on new applications such as product traceability, mobile payment, and two-dimensional code identification, A-share related companies include Yuanwanggu, New Cape, and New World. Upstream hardware vendors recommend focusing on hardware companies with economies of scale and technology barriers. Large-scale hardware companies have low production costs, while the brand effect makes horizontal and vertical expansion easier; related chip companies with high technical thresholds face less competition and enterprises have stronger profitability. The related companies in A shares include Dahua Smart, Zhongrui Sichuang, Hikvision, National Technology, and Guoteng Electronics.

The New World is the only domestic manufacturer that masters the core technology of the two-dimensional code, and the technology has reached the international advanced level. As the industry leader, the POS business and tax control business of the New World have great potential. The company is also the only company that has the "2G bottleneck technology" to automatically identify the core technology of the QR code. The company’s holding subsidiary Shanghai Wings Information and China Mobile are exclusive strategic partnerships to jointly develop and promote value-added services based on two-dimensional codes for mobile communications electronic receipts.

Yuanwanggu is the purest RFID concept stock. It uses the ubiquitous network technology to build the Internet of Things. The most important technology is the RFID electronic label technology. It is the most promising information for fast read and write and long-term tracking management. One of the technologies. Yuanwanggu has more than half of the railway RFID market share, has its own research and development advantages and oligopolistic advantages, and laid the foundation for the development of other areas of RFID. At present, Yuanwang Valley has entered the tobacco RFID industry, as well as military applications and library technology, as well as the logistics supply chain.

Subsequent policy effects are expected to be superimposed The Internet of Things was included in the strategic emerging industries in 2009. However, it has not yet formed an influential scale effect.

The forthcoming "Twelfth Five-Year" plan for the industry is considered by the industry as an important document that can prompt the emergence of the production industry from the concept to the real commercial opportunity. "After the publication of this programmatic document in the "12th Five-Year Plan" of the (Internet of Things), more supporting measures and detailed implementation rules will also be announced in succession," said researcher Fang Zheng Securities.

In May this year, the Ministry of Industry and Information Technology and the Ministry of Finance jointly issued a document stating that the special fund for the development of the Internet of Things this year will focus on supporting the R&D and industrialization of key core technologies and key products. At the same time, it will start application demonstration and promotion in key areas. Already in succession, listed companies such as Weishitong (002268) have received this money in recent days.

Since the application of the Internet of Things involves communications, transportation, food, finance, smart home and many other industries, the requirements and plans for specific applications vary. At present, the Ministry of Commerce has issued the "Guiding Opinions on Accelerating the Construction of Traceability System of Meat and Vegetables during the Twelfth Five-Year Plan" on the 1st of this month, and proposed to support 20 cities in two batches since 2010. Based on the pilot project for the traceability system of meat and vegetables circulation, a complete traceability system for meat and vegetables will be further established. Subsequent measures include three batches to support trials in large cities, and the traceability system will cover all major wholesale markets, large and medium-sized supermarket chains, and mechanization. Fixed-point slaughterhouses, standardized vegetable markets, and some groups of consumer units; Expanded coverage of pilots; Expanded coverage of livestock and poultry products such as cattle, sheep, chickens and ducks, and fruit, aquatic products, edible fungi, bean products, etc. on the basis of vegetables and meat. The main varieties. The goal set by the Ministry of Commerce is to complete the coverage of cities nationwide with more than one million population at the end of the “Twelfth Five-Year Plan” period.

For predictable supporting policies, industry researchers pointed out that follow-up concerns in the market can be applied to industrial chain companies that use RFID technology such as near-field payment, food traceability, and video security, which are already technically feasible and have a certain commercial base.