Research situation:
Recently, we went to Hengshi Technology Company to conduct field research. The company's chairman Qian Sujin and director Li Yan separately introduced the company's business situation in the power and communication fields, and showed the company's future development strategy in new business fields based on big data and communication technology.
Key points of investment:
Seize industry development opportunities and implement 2+2+N development strategies
Hengtai Shida is a leading provider and operator of integrated intelligent big data solutions in China. Based on electricity and communication, Hengtai Shida continues to provide informatization and intelligent construction services to customers in the energy, transportation, finance, telecommunications and other industries. At present, the company has subsidiaries such as Liaoning Post and Telecommunication, Worry-Free Prospects, Hengtai Energy Union, Yijing Youzhi, etc., and has R&D centers in Beijing, Nanjing, Chengdu, etc., and has 78 patents and 219 software copyrights in the fields of big data, the Internet of Things, new energy, etc., and has strong R&D capabilities in data and communication technology. In recent years, in the face of major opportunities in the power market and communication market-5G and ubiquitous power IoT, the company has established a “2+2+N” development strategy: from the business development strategy, it has formed two major technical support and development routes for intelligent big data applications and communication technology applications. Through implementing the two basic industries of Shenzhen Electric Power and Communications, it has gradually expanded into “N” industries such as transportation, finance, agriculture, etc., which provides broad room for imagination for the company's future development. The company's performance has increased significantly in the past three years. Revenue has continued to grow rapidly under the combined effects of extension and endogenesis. Net profit also exceeded 100 million in 2018, and operating cash flow was rapidly corrected, reaching more than 100 million.
Consolidate big data business and actively expand various fields
As a comprehensive solution provider for big data applications, the company's big data products currently have integrated monitoring solutions and software in the field of data collection; in the field of data transmission, they have communication planning and design capabilities and broadband power line carrier chip series; in the field of data storage, management and processing, they have intelligent control center solutions and integrated data platforms, real-time database platforms, etc.; in the field of data analysis and application, it has core technologies such as digital intelligence cloud mapping, VBI, and intellectual V3C; in the field of big data value transformation, it has integrated energy services, Solutions such as smart environments. Based on electricity, the company gradually realized market transformation from a professional power information technology enterprise to a cross-industry operator, and from a single application project-based solution to a model of data value mining and operation, further expanding a broader market and continuously increasing user stickiness.
On the basis of maintaining the traditional advantages of electricity, the company is seeking to further develop into the core business of electric power. Typical projects such as the “two rate and one loss” big data analysis and management of Hunan Electric Power and the “tag library” big data analysis of Shaanxi Electric Power's marketing customer in mid-year 2018 have laid the foundation for the company to further develop business in the ubiquitous Internet of Things business of electricity. In 2019, they won new bids for projects such as Hunan Power Grid, Hebei Power Grid, China Southern Power Grid, and Gansu Power Grid, with a contract amount of around 100 million. Furthermore, the company won bids for a series of major projects, such as the Beijing New Airport Command Center, the Clearing Center of the People's Bank of China, China UnionPay Co., Ltd., and the Nanjing Metro Line 7 Network Command Center, and achieved significant business growth in various industries.
Actively participate in early 5G construction to enhance the company's competitiveness
In order to meet the major opportunities of 5G, the company successfully completed the acquisition of the first batch of Class A survey and design units in the national communications industry and the leading domestic private communication design enterprise, Liaoning Post and Telecommunication Planning and Design Institute Co., Ltd., which achieved the company's business support for the core elements of informatization and intelligent communication technology. Adding Future Worry-free's carrier chip technology has formed a communications industry layout where the communication backbone network is connected to the terminal one-kilometer network. Among them, the carrier communication chip business, which is underpinned by a worry-free future, ranks among the top of the market. The scope of business of Liaoning Post and Telecom in the field of consulting and design in 5G construction covers 5G core networks and access networks. The access network specializes in network planning, survey and design of wireless base station equipment, and also includes network planning, survey and design for related supporting optical cable access and carrier transmission levels. At present, the operator has begun preliminary investigation of the 5G project, the company has already intervened in the preliminary investigation work of an operator's 5G wireless base station, and initially completed on-site surveys of 300 base stations. In addition, the company was shortlisted as Unicom IoT Company's 2019 agricultural data collection terminal and agricultural machinery data collection terminal supplier, and became Unicom's national agricultural machinery system supplier. The performance of Liaoning Post and Telecommunication has exceeded 100 million in the past three years, and is still on a steady growth trend.
Profit forecasting
With the rapid development of information technology such as big data, 5G, and the Internet of Things, customers are increasingly investing in information technology construction, market capacity and scale are gradually expanding, and the company is facing broad market prospects and development opportunities. We expect the company's revenue to reach 1,364 million yuan, 1,773 million yuan, and 2,340 yuan from 2019 to 2021, and the corresponding net profit to the mother is 186 million yuan, 257 million yuan, and 344 million yuan, giving the company an “increase in holdings” rating for the first time.
Risk warning: 5G development falls short of expectations; IoT business development falls short of expectations.