Event: according to the official account of Haoyun Technology Wechat, Haoyun Technology officially joined the FiRa Alliance (Fine Ranging) in March 2020, becoming another accepted Chinese company after XIAOMI, OPPO and Qingqing Research Division.
With recognition from international organizations, the company's UWB impact is expected to increase significantly: the FiRa Alliance was jointly formed by Samsung, Bosch, Sony Group Corp, NXP and the Telecommunications Technology Association (TTA) in August 2019, mainly through standards and certification to ensure an interoperable UWB ecosystem across chipsets, devices and infrastructure services, enabling users to achieve a seamless experience. Among the senior members of the FiRa Alliance, there are not only upstream chip manufacturers providing UWB RF chips, but also solution vendors providing ranging / positioning products and solutions, as well as downstream applications of smart terminals and smart homes. The UWB industry chain is clearly visible. As another accepted Chinese company after XIAOMI, OPPO and Qing Research Division, the company has successfully reaped an excellent opportunity to build UWB ecology with many outstanding international enterprises, and its international influence and competitiveness are expected to be significantly enhanced.
UWB technology has great potential for application, and the company has prospectively laid out many fields: due to the high accuracy of UWB technology in measuring distance or determining the relative position of the target, especially in the highly complex positioning environment, it will unleash great potential in intelligent fields such as mobile terminal, automobile, Internet of things, smart home, AR/VR, sports and industry. Runan Technology, a subsidiary of the company, is an integrated solution provider of Internet + Internet of things + big data based on UWB precision location service, and has been deeply cultivated in UWB technology for many years, and related technology products have been successfully applied in intelligent justice, nuclear power, medical treatment, power and other fields to achieve accurate location management such as real-time location and trajectory tracing of people and objects. This successful accession to FiRa fully proves the recognition of the company's technological strength and dominant position by international organizations, as well as the great confidence in China's science and technology market to smoothly join the alliance is expected to guide the formulation of standards, and the company's UWB application development will be given the first opportunity: this joining the alliance will help the company to actively participate in the formulation of ultra-wideband standards and guide the technological development direction of the UWB industry. In addition, the company's products will also have the opportunity to pass industry certification, obtain product endorsement, prove that the products are interoperable, and add confidence for customers to choose. In the future, Haoyun Technology will combine the advantages of the company's low code platform and Runan Technology UWB application to expand the software and hardware UWB application solutions to financial couplet, intelligent justice, public safety, power, nuclear power, biosafety, medical and other industries, so as to open a new journey of UWB application business and create a more intelligent and secure new world.
UWB technology to create intelligent prison landing, intelligent judicial "experience" is expected to be promoted to the whole country: in 2019, the company's holding subsidiary Runan Science and Technology, as the core member of Guangdong Judicial Administration Science and Technology Collaborative Innovation Center, relies on UWB technology to create the intelligent prison "judicial electronic identity authentication platform for supervisors".
Successfully passed the demonstration of the expert group. The platform is the first intelligent prison electronic identity management platform based on UWB technology and artificial intelligence Internet of things technology in China, subverting the daily management mode of traditional prison, and developing application scenarios such as electronic roll call, supervision map, judicial cloud, etc.; among them, the dynamic accuracy of UWB precision positioning technology can reach within 10cm, the static accuracy can reach within 2cm, and the centimeter level precision positioning can be really realized. The expert group believes that the platform can be promoted to the national judicial field as a "Guangdong experience" in the field of intelligent justice, and the company is expected to take the opportunity to quickly occupy the market and further enhance its leading position in the field of intelligent justice.
Investment suggestion: the company's main business is concentrated in the three areas of financial property, intelligent justice and public safety, among which intelligent justice and public security. By joining the FiRa organization, the company's comprehensive promotion of UWB technology will start a new journey. At the same time, Fitu, as the company's traditional business area, has developed from security integration to integrated IoT and then to Wisdom Wisdom. Through in-depth cooperation with Huawei, innovation and profitability are expected to be significantly improved. From 2020 to 2021, we expect the company to achieve operating income of 975 million yuan and 1.318 billion yuan respectively, net profit of 187 million yuan and 238 million yuan, and EPS of 0.27 yuan and 0.34 yuan, respectively, corresponding to PE40X and 32X, maintaining a "highly recommended" rating.
Risk hint: judicial administration information construction process is not as expected; Runan technology business development is not as expected; UWB technology promotion is not as expected.
