Event: the company announced on July 22 that Meishan Huantian Trading Co., Ltd. signed a "procurement contract" with Meishan Huantian Wisdom Technology Co., Ltd. and Sichuan Huatian Lighting Technology Co., Ltd., with a winning bid amount of 160 million yuan. At the same time, according to the company's official account, the company's R & D and production base of 5G multi-pole in one smart street lamp will be settled in Bengbu High-tech Zone, Anhui Province.
The smart street lamp industry is booming, and local projects are expected to accelerate the landing.
Since 2019, the company has successively obtained the Wisdom Street Lamp Construction and Operation Project in Shuangliu District, Chengdu, and formed a consortium with Tencent Cloud and Donghua. The bid for Chengdu Wisdom Greenway Project is about 870 million yuan, and the Meishan Project in July 2020 will be harvested again. In addition, the company, Guoxin Huayang and Bengbu City Investment will jointly establish a 5G multi-pole intelligent street lamp R & D and production base in Bengbu High-tech Zone. A new development mode of intelligent street lamps with industry and capital integration will be formed. according to the project cooperation agreement signed on the same day, Bengbu will be included in the new renovation project of 40,000 sets of 5G multi-pole intelligent street lamps in the large-scale construction plan of Bengbu City. Under the premise of being in line with the provisions of laws and policies, priority will be given to the products of the industry joint venture company under the same conditions.
There is a lot of room for the development of intelligent street lamps in the future, and at present, various places are in the stage of accelerating scale construction. In 2019, some cities began to carry out large-scale construction on the basis of the completion of pilot construction: for example, Shanghai completed the urban multi-pole transformation of about 200km, with 5G reserved for smart light poles and functional interfaces for smart city expansion; Shenzhen's construction of Qiaoxiang Road and Futian Central District Wisdom Street Lamp is about 2300 columns, which is the prelude to Shenzhen's large-scale construction of Wisdom Street Lamp. Chengdu cut in from the construction of multi-functional intelligent lampposts in the first Ring Road and Shuangliu area, and began to build smart lampposts on a large scale.
In addition, in terms of the mode of construction, management and operation, through the exploration in the past few years, the government has gradually explored a reasonable and acceptable mode of construction, management and operation of intelligent street lamps, and constantly introduced detailed management policies and reform the management mode. straighten out the relationship among construction, management and transportation, so as to promote the large-scale construction of intelligent street lamps, and the future space of the industry can be expected.
5G new infrastructure opens up a huge market for smart street lamps, from products to operation, opening up a broad space for the company's growth, no matter from the point of view of height, spacing, or from the point of view of power supply, security and management. smart lamp pole is the natural carrier of 5G micro base station, the ultra-dense network of 5G micro station will lead to the release of massive demand for smart lamp pole, and smart street lamp is the direct beneficiary of the wave of 5G new infrastructure. More importantly, smart street lamps will bring greater breakthroughs to the industry in terms of business model. Because of this important characteristic of smart street lamp data collection, it means that street lamp is no longer an one-off engineering project, street lamp will become the data entrance of a city, and the data value generated by operation will become increasingly prominent. open up a broader market.
Previously, the company announced a number of winning orders for smart street lamps, in addition to providing products, smart street lamp operation services are expected to open more room for growth. Operation services mainly include: charging pile operation, information advertising, franchise light pole equipped with 4G/5G base station and provide services, WIFI operation value-added services, smart parking value-added services, and so on. At present, the company adopts the business model of investment, construction and operation to promote intelligent street lamps in Chengdu Shuangliu project, Lijiang ancient city project, Renshou county project and so on. Through the mode of construction, product sales and smart city operation and service, the company will open up a broad space for growth in the future.
In addition, the company completed the issuance of convertible bonds and raised more than 200 million yuan for the Chengdu Wisdom Greenway project.
As the leader of listed companies in this field, the company highlights the advantage of capital, which is beneficial for the company to seize more large projects / large orders.
Investment advice:
5G new infrastructure will open up a broad new market space for smart street lamps. The company has early layout, comprehensive categories, strong design and R & D capabilities, and active cooperation with equipment manufacturers, operators and Internet giants. It is expected to obtain higher revenue from the operation of smart street lamp products and projects, and open up a broad space for growth. It is estimated that the company's net profit for 2020-2022 will be RMB 1.76 million, compared with 23 times PE for 2020, maintaining a "buy" rating.
Risk hints: the pneumonia epidemic affected the progress of the project, the smart street lamp project and 5G landing did not meet expectations, and the framework agreement failed to be translated into a contract.
