[matters]

Recently, the Ministry of Industry and Information Technology approved the test frequency of the new generation railway mobile communication system (5G-R) based on 5G technology to China National Railway Group Co., Ltd., and supported it to carry out the outfield technical test of 5G-R system, so as to continuously promote the high-quality development of railway communication industry. The approval of the 5G-R test frequency indicates that the railway 5G-R network construction presses the "start key" and also blows the "charge" of the railway 5G-R industry chain. In the future, 5G-R technology will be closely combined with railway Internet of things, big data and artificial intelligence technology, which will greatly improve the safety level of railway operation and railway economic benefits, and give birth to railway new business type, new model and new industry.

5G technology integrates a variety of advanced information and communication technologies, and has the advantages of large bandwidth, wide connection, low delay and so on. it can fully meet the needs of diversified railway data types, wide and narrow band service integration, widespread communication connections, diversified application scenarios and differentiated quality of service. The Ministry of Industry and Information Technology's approval of the railway 5G-R test frequency will help to further enhance the safety and security capability of railway communications, improve railway operation efficiency, and consolidate the world's leading advantage of China's railway, which fully reflects the great support given by the Ministry of Industry and Information Technology to the development of China's railway special wireless communication technology for a long time. It is of great significance to promote the upgrading and sustainable development of railway mobile communication technology in China.

5G-R system mainly carries the future railway, especially the railway core services such as high-speed railway train control, command and dispatching communications, which is the key infrastructure to ensure the safety and smoothness of railway operation.

Radio frequency is the only information carrier of railway wireless communication system, and it is also an indispensable basic resource to ensure the safe operation of railway. The distribution of 5G-R test frequency will play a positive role in the application and scientific research of railway 5G technology, the construction of 5G-R system and the development of key equipment.

Prior to this, the National Railway Group issued the Digital Railway Planning, proposing that the railway digitization transformation should be fully completed by 2035, and strive to achieve full digitization of railway business, full sharing of data, and continuous improvement in the level of intelligence. to provide new digital power for realizing railway modernization, serving bravely and supporting the "locomotive" of Chinese-style modernization. In the process of digital and intelligent railway construction, the upgrading of the new generation of railway mobile communication system is an important part.

[comments]

In order to meet the needs of railway digitization and intelligence during the 14th five-year Plan period, GSM-R railway special digital mobile communication system is facing upgrading. In August 2020, the National Railway Group issued the outline of Railway advance Planning for Traffic Powers in the New era, clearly proposing to "strengthen the construction and application of new infrastructure such as 5G communication network, and comprehensively promote the construction of a new generation of railway mobile communication network. Build a ubiquitous, advanced, safe and efficient modern railway information infrastructure system" And a comprehensive deployment of railway 5G-R technical research, frequency application, product research and development, standards-related work.

After the 5G-R test frequency is approved, it is expected to be gradually applied. The approval of the 5G-R test frequency complements the International Union of Railways (UIC) in assigning special frequencies to the future railway mobile communication system (FRMCS), resonates with the construction of intelligent high-speed rail in China, and creates a "four-network convergence" of rail transit. After the 5G-R test frequency is approved, the future railway system needs to further change from "test field" to "arena", from "ivory tower" to "application field", to conduct full test verification and application demonstration on high-speed railway, plateau railway, alpine railway and heavy-haul railway; through scale tests and tests, to build self-reliant and world-leading full-system supporting systems and network equipment.

Focusing on train control, command and dispatching and other business scenarios in the railway industry, Jia iFLYTEK Hong has taken the lead in developing key technical products for 5G-R-related application scenarios. The company has many years of railway dedicated communication technology accumulation, and actively carry out 5G-R application solution innovation. The approval of the 5G-R test frequency indicates that the railway is accelerating into the era of 5G private network, which lays a foundation for the company to further speed up the research and application of 5G-R-related products and solutions.

Jiaxun Feihong has actively innovated in the formulation and application research of 5G-R standards, and has participated in the formulation and preparation of a number of industry standards and application white papers. In August 2023, under the guidance of the State Railway Administration and National Railway Group, relying on the key Laboratory of Broadband Mobile Information and Communication Railway Industry and led by Jiaxun Feihong Intelligence Research Institute, the "White Paper on the Application of Railway 5G-R Visual Technology" jointly compiled by Beijing Jiaotong University, Railway fourth Academy, ZTE, Guangzhou Railway Group and Liujie Science and Technology was officially released. Focusing on the future intelligent development direction and goal of China's railway communications, the research on related technologies and applications has been carried out to jointly promote the technological innovation and industry application of railway 5G-R.

The company is an integrated solution provider for intelligent command and dispatching of the whole industry chain. Over the years, Jia iFLYTEK Hong has taken command and dispatching as its core business scenario, relying on the new ICT technology of "Smart move Cloud things", keeping pace with the evolution of information and communication technology in the industry, and providing many core products and intelligent solutions for the digital and intelligent transformation of the industry. From 2023 to 2025, we estimate that the company will achieve a revenue of 1,500,450.1840 million yuan and a net profit of 1.53 million yuan, corresponding to a PE of 30.32ppm, and a "over-holding" rating of 22.19 times.

[risk Tip]

5G-R promotes the risk of rhythm change

Industry competition aggravates the risk.