Event: according to the Securities Times, on February 18, the company reached a strategic cooperation with the participating enterprises, Helun Technology and Baidu, Inc., which will jointly develop around urban emergency, public safety and health and epidemic prevention to provide more industry solutions.
Under the epidemic situation, the necessity of developing emergency industry is highlighted, and the industrial space is huge. In order to give further play to the irreplaceable role of the emergency industry in the recent COVID-19 epidemic, improve the emergency response ability and improve the emergency management system, various departments and regions have taken multiple measures to speed up the digital construction of emergency industry and the optimization of industrial structure. According to the estimation of China Industrial Information Network, the market scale of special products and services in the field of domestic security emergency response has exceeded one trillion yuan in 2018. With the acceleration of the development of emergency industry and the improvement of social awareness of emergency prevention and control, this market has more room for development in the future.
Huasheng Tiancheng and Helun Technology are the leading enterprises in production safety service in China. Huasheng Tiancheng, together with the shareholding company and run Technology, has formed a full range of information products and solutions system in the field of safety production supervision and service, laid out a complete production safety cloud system, and realized the construction of national emergency management information system. And provide effective service programs on public health emergency management big data platform, production safety monitoring and early warning big data platform, production safety integration platform, epidemic situation monitoring and early warning platform.
Work with Baidu, Inc. to focus on innovative cooperation in the emergency industry. According to the company's website, the company has carried out in-depth cooperation with Baidu, Inc. on data models and algorithms, and has jointly created a "big data platform for epidemic prevention and control." directly provide big data analysis and prediction, emergency response equipment and emergency incident intelligent decision-making system for epidemic prevention and control. The emergency industry covers a wide range of industries and has a long industrial chain, so it is more necessary to achieve the information construction of the emergency industry and meet the growing demand for emergency products and services. Baidu, Inc., Huasheng Tiancheng and Helun Technology have their own advantages in technical endowment, industry awareness and product solutions in the field of emergency and public safety, and tripartite cooperation can achieve complementary resources and technology. coordinate to enhance the emergency industry ecology and product innovation capability.
Investment suggestion: the company and Baidu, Inc. join hands to establish a prevention and control big data platform. It is estimated that the EPS from 2019 to 2020 will be 0.21 yuan and 0.27 yuan respectively, maintaining the "overweight-A" rating.
Risk hint: cooperation is lower than expected; market competition intensifies