The company takes advantage of the "14th five-year Plan" policy and actively participates in government cooperation projects. With years of deep cultivation in the field of road lighting and strong product research and design capabilities, the company has successfully transformed into a leading enterprise in the field of intelligent lampposts. Combined with the needs of its own product development, the company cooperates with Internet giants to actively participate in the research and development of artificial intelligence, 5G micro-base stations and other scientific and technological fields, with a clear and promising growth direction in the future.
China's first road lighting company listed on the motherboard, with full coverage of smart city construction. Huatian Technology was founded in 2004, deeply ploughed road lighting for many years, and was listed on the A-share Shanghai Stock Exchange in 2017. In recent years, the company has focused on development and gradually become a new infrastructure operator represented by smart street lamps. In 2021, due to the demand of business expansion, a new factory was built in Deyang to increase production capacity, and in 2022, 210 million yuan was raised for the smart street lamp project. The company's ownership structure is stable, the management structure is clear, and the core executives are younger but have enough practical experience.
The demand for intelligent street lamps is increased, and the development of product business is balanced. Under the 14th five-year Plan, the state and local governments have issued relevant policies on the intelligence of urban infrastructure, promoted the construction of smart city infrastructure, and increased the output of smart street lamps according to the actual demand. At present, the annual stock market of Wisdom Street Lamp is about 15 billion yuan, and the incremental market is 300-40 billion yuan, which is in the blue ocean market. The company can continue to seize market share in the future. The company has developed the second generation smart street lamp, which is leading in the industry, and another main product line culture customized street lamp is also combined with intelligent applications to combine double advantages and highlight differentiation. In the future, photovoltaic applications will be developed to help compete in the industry.
Cooperate with local governments to build smart cities, join hands with Tencent and Lenovo to add science and technology genes. The company currently has 9 joint ventures with local governments, bringing stable investment returns for the company, and will continue to cooperate with 20-30 enterprises to maintain the number of projects and stable sources of income in the future. Cooperate with Lenovo, Tencent and other Internet companies to develop the Internet of things and artificial intelligence technology, increase the competitiveness of the industry, gradually expand the market share of smart street lamps, and at the same time invest in Zhong Zhi City to solve the application problems of 5G micro base stations. Further seize the market.
Product sales rose slightly and gross profit margin fell slightly. In 2021, the company's product R & D and manufacturing sales of 52400 sets, an increase of 6.29% over the same period last year. In the first three quarters of 2022, the company won the bid for 620 million yuan, an increase of 23% over the same period last year. The increase in product sales and project volume contributed to steady growth in 2023. Revenue fell 31.14% in the first three quarters of 2022 compared with the same period last year, mainly due to repeated epidemics and macroeconomic recession. The company's gross profit margin has declined slightly in recent years, mainly because the new accounting standards since 2020 require direct sales-related fees to be included in product costs, superimposed raw material steel prices to warm up and compress gross profit.
Investment suggestion: the company has successfully transformed from the traditional street lamp business to focus on building smart street lamp business, while actively expanding artificial intelligence, edge computing and other scientific and technological fields, to the road of scientific and technological development. It is estimated that the company's EPS will be-0.03,0.40,0.55 yuan per share in 2022-2024, and the company will be given a target price of 15.20 yuan per share in 2023, with a "highly recommended" rating for the first time.
Risk hint: project payback is lower than expected, raw material price fluctuation risk, market competition risk, product research and development is not as expected.
