RFID IoT applications are everywhere

According to the "2011 China Wireless World and Internet of Things Conference", the "12th Five-Year Plan" for the Internet of Things will clarify the 12 major application areas of the Internet of Things technology, including smart grids, transportation, logistics industry, medical health, etc. At present, the scale of the RFID industry in China is also increasing year by year, with an average growth rate of more than 40% in the past three years, and it exceeded 10 billion yuan for the first time in 2010, and is expected to reach 16 billion this year.

The Internet of Things welcomes a 30% annual compound growth rate

According to the plan, the Internet of Things is an important part of the "12th Five-Year Plan" strategic emerging industries, and policy support and technological progress have promoted the rapid development of the industry. It is estimated that by 2015, the total output value of the domestic Internet of Things industry will reach 750 billion yuan, with an average compound growth rate of more than 30%. Smart transportation, video security, and smart grids are relatively mature application areas of the Internet of Things. At present, the industry is relatively fragmented and the competition is relatively sufficient. In order to promote the development of the Internet of Things in new fields such as smart logistics, product traceability, mobile payment, and environmental monitoring, the state has established a special agency to formulate and improve industry standards, and enterprises are actively exploring replicable mature business models. Taking the lead and expanding the application is the development trend of the industry. At present, the Internet of Things industry is mainly based on closed-loop applications. Unifying industry standards can connect related application fields and establish standard interfaces between enterprises to share resources. On this basis, the industry will transition from public and commercial use to a larger civilian market.

Taking radio frequency identification as a clue

In an interview with reporters, Fan Ge, an analyst at Shenwan Securities, said that the recent secondary speculation of the "Internet of Things concept" is still due to the lack of mainstream sectors leading the market. Therefore, in the absence of mainstream, the speculation of theme stocks has become a hot topic at the moment. In his opinion, the speculation of stocks that have made up for the rise has reached a peak. However, from the perspective of emerging concepts, the concept of "Internet of Things" is very practical and has a wide range of applications. If it is really implemented, I believe that many listed companies can benefit from it.

Judging from the recent strong Internet of Things stocks, almost all of them have clues of radio frequency identification (RFID). Fan Ge suggested that the downstream can focus on operating new applications that are feasible and have market space. Focus on new applications such as product traceability, mobile payment, and QR code recognition. A-share related companies include Yuanwanggu, Xinkaipu, and Newland. Upstream hardware vendors are advised to pay attention to hardware companies with scale effects and technical barriers. Large-scale hardware companies have low production costs, and the brand effect makes horizontal and vertical expansion easier; related chip companies with high technical barriers face less competition and have stronger corporate profitability. A-share related companies include Dahua Intelligent, Zhongrui SiChuang/Hikvision, National Technology, and Guoteng Electronics.

Newland is the only manufacturer in China that masters the core technology of QR codes and its technology has reached the international advanced level. As the industry leader, Newland's POS business and tax control machine business have great potential. The company is also the only company with the core technology of automatic QR code recognition of "3G bottleneck technology". The company's holding subsidiary Shanghai Yima Information has an exclusive strategic partnership with China Mobile to jointly develop and promote mobile communication electronic receipt value-added services based on QR codes.

Invengo is the purest RFID concept stock. It uses ubiquitous network technology to build the Internet of Things, in which RFID electronic tag technology is a very important technology. With fast reading and writing, long-term tracking and management, it is one of the most promising information technologies. Invengo has more than half of the railway RFID market share, with independent research and development advantages and oligopoly advantages, laying the foundation for the development of other RFID fields. At present, Invengo has entered the tobacco RFID industry, as well as military applications and library technology, and logistics supply chain.