The trillion market of the Internet of things is opened, and there is great potential for subdivision of the industrial chain. IDC estimates that the Internet of things will generate $1.46 trillion in global value by 2020, while Chinaidr predicts that China's Internet of things market will exceed 1.8 trillion yuan. It is widely believed that China will become a major player in the Internet of things industry. Thanks to its large population base and low chip manufacturing costs, China will play an important role in promoting the growth of the global Internet of things market. GSMA proposed a compound growth rate of about 9% from 2019 to 2022, and it is estimated that by 2022, the size of China's Internet of things industry will exceed 2 trillion yuan. According to the current development trend of the Internet of things industry, it is expected to exceed expectations to complete the 13th five-year Plan of China's Internet of things industry scale target of 150 million yuan in 2020. At the MWC19 conference, GSMA proposed that the scale of Internet of things connections in China is expected to reach 7 billion by 2022.
UWB+ low-code platform dual-core drive platform + transmission to help drive into the blue ocean of the Internet of things. In March 2020, the company formally joined the FiRa Alliance (fineranging), becoming the third Chinese enterprise to join the alliance after XIAOMI and OPPO. The company is located in the middle and lower reaches of the Internet of things industry chain, two major technological advantages to promote the development of platform + transmission. According to the definition of foresight Research Institute, the industry chain of the Internet of things can be divided into "use-cloud-edge-tube-end". "tube" is the pipeline layer, which plays the role of ensuring communication; "cloud" is the cloud platform, which is used for data calculation and storage.
After years of accumulation in the field of UWB technology, compared with traditional Bluetooth, Ultra Wideband Technology (UWB) has more advantages in positioning accuracy, anti-jamming ability, security, transmission speed, power consumption and so on. It can be applied to 2C consumption fields such as smart home and smart travel, as well as 2B fields such as system integration, intelligent security and so on. The company's intelligent IoT management platform has four characteristics: low code, parallel development, high compatibility and wide industry coverage, which solves the pain point of numerous terminals and high marginal cost of programming in the era of the Internet of things.
Company profit forecast and investment rating: we expect the company's net profit from 2020 to 2022 to be 1.94,2.46 and 320 million yuan respectively, corresponding to EPS 0.28,0.35 and 0.46 yuan respectively. The current stock price corresponds to a PE value of 38, 30 and 23 times from 2020 to 2022, respectively. Cover for the first time and give a "recommended" rating.
Risk hint: the risk that the performance is not up to expectations due to the intensification of competition in the industry; the risk that the promotion of UWB is not as expected.