Investment points: Seize industry development opportunities and implement the 2+2+N development strategy Hengtai Shida is a leading intelligent big data integrated solution provider and operator in China. Based on electricity and communications, it continues to provide informatization and intelligent construction services to customers in the energy, transportation, finance, telecommunications and other industries. Currently, the company has subsidiaries such as Liaoning Post and Telecommunication, Hengtai Energy Union, and Yijing Youzhi, etc., and has R&D centers in Beijing, Nanjing, Chengdu, etc., and has obtained 78 patents and 219 software copyrights in the fields of big data, the Internet of Things, and new energy, and has strong research and development capabilities in data and communication technology. In recent years, facing major opportunities in the electricity 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. By implementing the two basic industries of deep power and communications, and gradually expanding into “N” industries such as transportation, finance, and agriculture, this provides a broad room for imagination for the company's future development. Increase investment in intelligent big data research and development and actively expand multiple vertical application fields as a comprehensive solution provider for big data applications. Currently, the company's big data products have comprehensive monitoring solutions and software in the field of data collection; in the field of data transmission, have communication planning and design capabilities and broadband power line carrier chip series; in the field of data storage, management and processing, have intelligent control center solutions, integrated data platforms, real-time database platforms, etc.; in the field of data analysis and application, it has big data visualization and intelligent analysis platforms, digital intelligence, VBI, Zhili V3C, etc. Core technology; in terms of big data value transformation, it has solutions such as comprehensive energy services and intelligent environment. Based on electric power, the company has gradually realized the market transformation from a professional power information technology enterprise to a cross-industry operating enterprise, and from a single application project-based solution to a model of data value mining and operation, further expanding the broader market and continuously increasing user stickiness. On the basis of maintaining the traditional advantages of electricity, the company seeks to further develop into the core power business. In 2019, it won new bids for projects such as Hunan Power Grid, Hebei Power Grid, China Southern Power Grid, and Gansu Power Grid, etc., and the contract amount reached about 100 million yuan. Furthermore, the company won bids for a series of major projects such as the Beijing New Airport Command Center, the People's Bank of China Clearing Center, China UnionPay Co., Ltd., and the Nanjing Metro Line 7 Network Command Center, and achieved significant business growth in various industries. The merger and acquisition of Liaoning Post and Telecommunications and actively participated in the construction of 5G networks to meet the major opportunities of 5G. The company successfully completed the acquisition of Liaoning Post and Telecommunication Planning and Design Institute Co., Ltd., the first batch of Class A survey and design units in the national communications industry and a leading domestic private communication design enterprise, and achieved the company's business support in informatization and intelligent communication technology, which is a core element of informatization and intelligence. Coupled with the carrier chip technology of Worry-Free Future Company, the telecommunications industry layout with the communication backbone network and the terminal one-kilometer network connection has been formed. Among them, the carrier communication chip business, which has no worries about the future, ranks high in the market. The scope of business of Liaoning Post and Telecommunications in the field of consulting and design in 5G construction covers 5G core networks and access networks. The access network includes network planning, survey and design of wireless base station equipment according to expertise, as well as network planning, survey and design at the level of related supporting optical cable access and carrying and transmission. At present, the operator has begun the preliminary investigation of the 5G project, and the company has already intervened in the preliminary survey of the 5G wireless base station of an operator, and completed the initial site survey of 300 base stations. The performance of Liaoning Post and Telecommunication in the past three years has exceeded 100 million, and is still in a steady growth trend. Profit forecast With the rapid development of information technology such as big data, 5G, and the Internet of Things, customers' investment in informatization construction is increasing, market capacity and scale are gradually expanding, and the company is facing broad market prospects and development opportunities. We expect the company's revenue from 2019 to 2021 to be 1,364 billion yuan, 1,773 million yuan, and 2,340 million yuan, and the corresponding net profit of the mother's net profit is 186 million yuan, 257 million yuan, and 344 million yuan, giving the company an “increase in holdings” rating. Risk warning: 5G development falls short of expectations; IoT business development falls short of expectations