Company profile company was founded in 2004, through M & An extension has formed a building walkie-talkie, smart home, monitoring, parking system-based community security solution supplier, leading products building walkie-talkie market share of about 24%. Since 2014, considering the downward performance of real estate under pressure, the company has actively laid out areas such as "Internet + convenient transportation" and "Internet + Yimin service" combined with the original community customer resources.
Internet parking to solve parking difficulties, improve urban operation efficiency and improve car owners' parking experience the emergence of Internet parking to a certain extent will alleviate the current parking situation of insufficient parking spaces, poor supply efficiency and poor parking experience. In the short term, Internet parking can realize the interconnection of parking space information, inform owners of free parking information, and guide vehicles into the parking lot, and further use wireless technology to achieve reverse car search and dynamic update of parking information. In the long run, the government can use the conclusions of big data's analysis to assist policy formulation.
The intelligent level of parking is the first step to realize Internet parking. Compared with traditional parking, Internet parking has done addition in hardware and software. The first step of its realization is to improve the intelligent level of parking. In addition to the original parking intelligent equipment in hardware, Huawei cooperates with operators to install detectors using NB-IoT protocol standards on each parking space, which significantly improves the efficiency of data transmission, reduces the cost of data standardization between parking lots, and improves the accuracy of tamping data on the hardware foundation. We estimate that the sharp increase in hardware conversion costs and the resonance of the intelligent rate will lead to the outbreak of Internet parking business. In the next three years, the market space will be 45, 57, 20.2 billion yuan, an increase of 24%, 27%, and 254%.
The main business has stabilized, the extension can be expected, and the growth is just beginning. The intercom is mainly used in new buildings, and the performance is more related to the area of housing completed. From the current housing sales data warmed up to the land purchase area of the situation, the main business performance stabilized for the high probability. In extension, the company concentrated resources to sign contracts with parking lots. At the end of last year, 504 car parks and 1741 2016H1 were signed. Looking forward to the later stage, the market of hardware, software and automobile is expected to start gradually.
The valuation and rating use the segment valuation method. Based on the market value of ETCP and the number of parking as the comparison standard, the market value of Internet parking business is about 3 billion; excluding the erosion of traditional business performance caused by the sharp increase in costs caused by Internet parking promotion, the net interest rate is estimated at 20%, which can achieve about 120 million yuan. Assuming that the business income CAGR is 27.5% in the next three years, it will be given PE45 times, with a market value of 5.4 billion yuan. The total market capitalization is estimated to be 8.4 billion yuan, equivalent to the target price of 15 yuan, 10% more than the current stock price safety margin, covering the "overweight" rating for the first time.
Risk hint: Dingzeng can not be issued smoothly, lack of funds to promote the development of Internet parking business.