Adhere to the "foundation + growth" business layout, dedicated communication leader set sail again. Hainengda is a leader in the field of private communications in China and a technological leader in the field of private communications in the world. at present, it is based on narrowband communication business, public-private integration, 4G\ 5G broadband products, command and dispatching as the growth business strategy.

In narrowband business, tamping technology leads, upgrading product layout, domestic dedicated network to achieve steady growth, overseas business continues to plough, reserve rich project pool. The development of growth business has been further consolidated, with the integration of public colleges to form a total of more than 100 industry application cases; in terms of command and dispatching, the company deepens NLP application, enriches data label system, and expands a series of intelligent application models and actual combat scenarios. 4G/5G broadband, in the domestic mainstream operator 4G/5G extended skin base station collection project continues to scale commercial, at the same time in the "Belt and Road Initiative" region in the capitals of many countries to achieve large-scale commercial. In terms of satellite Internet business, the company also has a leading level of technology and design, and is gradually laying out Central Asia, South Asia and other "Belt and Road Initiative" regions.

Keep adding code and reserve core technology to maintain the leading edge of technology and products. As of the first half of 2023, the company's R & D expenditure is 428 million yuan, and the R & D expenditure rate is 19.0%. It has a number of core technologies and independent intellectual property rights that have reached the leading level in the industry. As the leader of private network communications, the narrowband field has significant technological advantages. The new generation of digital trunking products have been comprehensively promoted and highly recognized by the market. At the same time, the distribution of intellectual property rights has been strengthened around the growth business, and the cumulative number of patents applied for has reached 505.

Strong and detailed marketing, improve the global marketing network. Hainengda continues to explore and implement the digital marketing model, through the Internet to reach customers' desktops of products and solutions for some industries and industrial and commercial markets, to achieve more accurate marketing and more complete channel coverage, to strengthen channel construction and coverage, and to further broaden business boundaries and respond to customer needs more professionally and conveniently by developing more partners and dealers in non-traditional private network industries. As of the first half of 2023, the company has more than 90 branches around the world, and its sales and service network covers more than 120 countries and regions.

Profit forecast and investment rating: we expect the company's return net profit for 2023-2025 to be RMB 448,000,000, EPS for 2023-2025 to be 0.25pm 0.37max, respectively, and current share price corresponding to PE to be 24-16-11 times. With the increasing demand for the integration of public colleges and the rapid development of the company's growth business, we are optimistic about the future performance of the company and maintain the "buy" rating.

Risk hints: market development is not as expected, competition in the dedicated communications industry aggravates risks; supply chain costs rise and out of stock risk; exchange rate fluctuation risk.