Behind the Tiandi board of Royal Silver Shares: the digital currency business is not clear. The declining trend of the main business is difficult to stop
Financial Union news (Guangzhou, reporter Ren Chaoyu), by the digital currency concept by the market hot, royal Silver shares (002177.SZ) share price fluctuations.In 2022, the company has issued three announcements of abnormal fluctuations in stock trading.Although the concept of digital currency, but the company’s disclosure of digital currency-related business has been somewhat “ambiguous”, “dry goods” less.Investors repeatedly asked, the company’s most frequent response is to “check the regular announcement”.On the other hand, the main ATM business is difficult to block, the revenue has been declining.Securities investment, which has been a profitable engine in the past, will also crash in 2021.A number of consulting analysts told financial union reporters, optimistic about the development of digital currency industry, in technology, channels and other aspects of the accumulation of enterprises do have advantages.However, it will take some time for both industry popularization and listed companies to generate revenue to remind investors of the correction risk of digital currency market.On February 14, Royal Bank shares staged a “earth-sky board” trend, once achieving four consecutive board exchanges, and ended up 7.41%, up more than 40% in the last year.What’s driving the company’s stock recovery is the current market’s enthusiasm for the concept of digital currency.Confusingly, the extent to which Royal Bank is involved in digital currency-related business remains unknown from a business perspective.By 2022, unaudited data shows that the company is expected to achieve revenue of 90,648,700 yuan, of which more than 80% is contributed by ATM related business and operating leasing business.In fact, in addition to the company itself, the majority of secondary market investors are probably the most concerned about the development of the company’s digital currency business.Since March 2021, there have been 54 questions about digital wallet, participation advantages, application implementation, recruitment and distribution, etc.In addition to saying that “digital RMB technology is in the research and development stage and has not yet been commercialized, digital currency wallet is in the research and development stage”, royal Bank shares more than let investors pay attention to regular announcements.According to the mid-2021 report;”Company was set up research and development center of digital currency, related research and development of digital currency, in addition to carry out the hardware and software digital wallets, digital currency exchanges on financial instruments and the flow of technology in the field of research and development, we also for digital currency in its own application scenarios of smart park management system to carry out research and development, established the first mover advantage.”In contrast, other digital currency concept listed companies have announced the latest developments in recent days.According to The company, it has participated in the application of digital RMB smart teller machines outside airports, customs and other Winter Olympics venues.Chu tianlong said the company has participated in a number of banks and pilot cities of digital yuan-related products and technical services pilot.Nantian information said it has participated in digital currency application research and development in some large state-owned banks, generating a small amount of business income.Internet As a key company in the ATM industry, Royal Silver Shares also achieved a high income growth of more than 30% in five or six years after listing.But now, due to the impact of mobile payment, royal Silver Share revenue has recorded negative growth for 6 consecutive years, the net profit in 2021 is expected to turn into a loss of 45 million to 65 million yuan.The total revenue is expected to decline 50.29% year on year. In addition to operating leasing business, ATM product sales, ATM cooperative operation and ATM technology, financial services and other businesses all saw a significant decline.According to qianzhan Industry Research Institute, the number of ATMs in China has decreased year by year since 2018. By the end of the second quarter of 2021, the number of ATMs in China was 986,700, down 19,500 from the previous quarter.In the future, the total amount of ATM machines in China will decline at a low speed. It is preliminatively predicted that the amount of self-service terminals in banks will further shrink to 840,000 units in 2026.Performance pressure in the past few years, Royal Silver shares have been relying on securities investment to support profitability.In 2019 and 2020, the company’s investment income was 96 million yuan and 40 million yuan respectively, accounting for 143% and 56% of the net profit amount.”Investing in stocks” is a good way to make money, but its sustainability is difficult to control.In 2021, the overall downturn in the secondary market, Royal Silver stock securities investment appeared a large loss.It is estimated to record an investment income of -46.5072 million yuan. The top four securities investment losses are Zhongqi Internet, Meituan-W, Ekia Asia And Hang Seng Internet.In addition to the short – term trading of BYD shares, Geely auto, Wuxi Kant, etc.Overall, under the impetus of the Winter Olympics and other scenes, digital currency related industries are in full swing.It is also true that the companies involved have yet to generate large revenues.Ai Media consulting CEO and chief analyst Zhang Yi told the financial Union reporter, the current digital currency market concept is stronger than business.In theory, investors should be aware of the risk of a correction.From the perspective of national security and international relations, the large-scale application of the digital RMB will not be far away.And, wechat pay, alipay has laid a good foundation for it.Su Xiaorui, a senior financial analyst with Analysys, said in an interview that the digital renminbi is still in the pilot stage, and it will take some time for it to reach full popularity.Digital RMB has the nature of legal currency, and transactions are conducted with “zero commission fee”. It remains to be seen how all parties will conduct commercial exploration on zero-commission digital-currency business to improve performance in the future.It is worth paying attention to whether the listed companies own relevant technology and whether there is a good channel relationship with commercial banks in charge of exchange and circulation links.Su Xiaorui pointed out that from the perspective of circulation, the manufacturers engaged in the production and release of digital currency terminals, which have accumulated many banking customers, also have advantages. The process of digital currency promotion is inevitably inseparable from the support of terminal equipment, which is also the “rigid needs” of banking institutions.From this point of view, Royal Bank has been engaged in ATM related businesses for many years, and its accumulation of channels and bank customers has formed an accumulation advantage for it to enter the field of digital currency.Perhaps that’s why royal Bank’s digital currency business has been hotly touted even though it has made little progress.Zhang Yi judged that Royal Silver shares in the financial field has a deep accumulation, including technical reserves, operational resources.But from a security perspective, state-owned and central enterprises are likely to be the biggest beneficiaries of the whole digital currency wave.Royal Silver Shares does need to find ways to transform as soon as possible, but I’m afraid it will take a long time to form business quickly.