Incident: The company signed a “Strategic Cooperation Agreement” with Chengdu Dingqiao Communications. To achieve the goals of complementary advantages, mutual benefit and common development, the two sides will gather their respective strengths to carry out all-round strategic cooperation to jointly develop advanced technologies, products and solutions.
The company and Dingqiao Communications have reached cooperation in various areas such as product integration, Enco R&D, and service. According to the announcement, the cooperation model between the company and Dingqiao Communications is: 1) integrated research and development of each party's superior products and solutions, and the finished products are sold in the global market; 2) the two parties will use their respective global service platforms and localization capabilities to provide comprehensive service support for the cooperation projects of the two parties, including equipment installation and debugging, business debugging, fault location and elimination, etc.; 3) The company promises to use Dingqiao as the preferred supplier partner, and provide customized solutions; 4) In the field of higher-level services such as spare parts management, maintenance services, and management services, etc. Dingqiao Communications can provide the company with specialized service products and service teams. We believe that the company and Dingqiao Communications have reached cooperation in various areas such as security product integration, security application development, and local services.
Dingqiao is a communications equipment and operating system platform solution provider for Huawei, creating localized, high-security, high-security phones. Dingqiao Communication Technology Co., Ltd. was founded in Beijing in 2005 as a joint venture between Nokia and Huawei. It is the world's leading provider of communication equipment and operating system platform solutions.
Dingqiao has three business segments: public networks, private networks, and secure terminals. Dingqiao products and solutions have been fully applied to China Mobile's 3G and 4G commercial networks, ranking first in market share. The company's security terminal uses a domestically produced Kirin AI smart chip and a unique security dual system design, a normal operating system for living areas and a safe operating system for work areas. A closed-loop security system from hardware to software, from the underlying architecture to the upper layer applications, and from end to cloud. The entire customized security phone can fully meet the safety goals of anti-brush, anti-leakage, and anti-cracking.
Application software has become the key to Encore's industrialization ecosystem, and Xinyuan Doudou meets mobile office needs for instant communication.
Under the catalyst of the three factors of policy, technology, and market, Encore's progress is very obvious, and the market space for software and hardware products and services related to Encore is expected to reach the trillion level. At the same time, localized application software has become the key to building a domestic operating system ecosystem. Over many years of technical accumulation, Beixinyuan developed Xinyuan Doudou — a secure and reliable instant messaging platform based on a private server, equipped with an open platform, adding various high-quality standard office applications such as cloud disk applications, email systems, attendance systems, approval, schedule management, video conferencing, and live conference broadcasts to quickly achieve mobile offices.
Investment advice: Under the catalyst of the three factors of policy, technology, and market, Anke ushered in policy implementation. Many of the company's products were shortlisted in the “Procurement List”. At the same time, multiple versions of the company's Xinyuan Doudou were applied in various government and financial industries. The company's revenue for 2019-2021 is estimated to be 739/912/1,179 million, respectively, and net profit of the parent is 208/309/479 million respectively, maintaining the “buy” rating.
Risk warning: Industry competition intensifies; government investment in security information products falls short of expectations; Xinyuan Doudou's promotion falls short of expectations; there is a risk that key assumptions may be erroneous.