Incidents:
The company announced that its wholly-owned subsidiary Shenzhen Hynengda Technology Service Co., Ltd. intends to win the bid for the Shenzhen Metro special communication system procurement project. The proposed bid amount is RMB 10,6101 million.
1. Consolidate the position in the rail transit market and expand the industry circuit
This time, the wholly-owned subsidiary Haiji Service plans to win a bid amount of 10,6101 million yuan to provide a dedicated communication system for the Shenzhen Metro. In recent years, the company has gradually become a leading enterprise in the field of special communications for urban rail transit, and winning this bid will help the company further consolidate its market position. Continued expansion on the industry circuit and in the industrial and commercial fields has enabled the company's private network business to continue to grow.
2. Emergency communication benefits, new market opportunities for private networks
Emergency communication is a very important part of the emergency field. Previously, some cities in China had used the 370 MHz band for emergency narrowband wireless communication. As a domestic leader in the field of emergency communications, Hytera is expected to benefit from continued strengthening of emergency communications in the future. China's recent trillion-dollar treasury bond plan is investing in emergency and other fields, which may bring new market opportunities to the construction of emergency communications.
3. The construction of a dedicated railway communication network has broad prospects
The Ministry of Industry and Information Technology approved the test frequency for railway next-generation mobile communication systems (5G-R) based on 5G technology to China National Railway Group Co., Ltd. The Ministry of Industry and Information Technology commissioned the National Railway Administration to implement a radio frequency usage license and clarified the 400MHz railway digital mobile system frequency planning list.
Domestic private network walkie-talkie industry enterprises are ushering in major opportunities and broad prospects to participate in the construction of domestic digital private network communication systems in key industries.
4. Looking ahead, private network leaders have consolidated their basic business, and innovative business companies continue to consolidate their leading position in domestic private networks, launch H series products, be applied in various projects around the world and form large-scale orders, and the commercial industry circuit. At the same time:
① In terms of public specialty integration, the “White Paper on Public Professional Integration” and “Security White Paper” were published overseas, and cooperation with global industry customers and more than 20 operators to build more than 300 public sector integration platforms. Actively increase market share in transportation, energy, industry and commerce industries, and continue to promote digital marketing.
② In terms of satellite communication, the company has conducted research and technical research on the current state of the low-orbit satellite communication industry chain and related modules, participated in the development and industrialization of multi-mode terminal products, formed a multi-mode terminal technology plan, and is promoting prototype terminal development. Key satellite communication components such as noise amplifiers (LNA, LNB), power amplifiers (BUC), redundant backup controllers, and various satellite communication antenna terminals can be provided.
③ In terms of NEV electronics, Shenzhen Hynengda Communications Co., Ltd., a wholly-owned subsidiary, signed the “Hytera NEV Electronics Project Strategic Cooperation Framework Agreement” with the Fuzhou Economic and Technological Development Zone Management Committee and Guomin (Fujian) Investment Co., Ltd. The company's new energy and automotive electronics products have been widely used in the world's leading power battery manufacturers, mainstream new energy vehicles and portable energy storage manufacturers, and this cooperation is expected to further promote business development. The company's NEV electronics business is mainly for some of the leading domestic NEV battery manufacturers and automakers. Among them, the main automaker customers include Geely, Guangzhou Automobile, Jinkang, and Xiaopeng.
Profit forecasts and investment suggestions:
Considering the impact of the macro environment in '23, we adjusted the company's net profit forecast for '23 million yuan (original value was 410 million yuan). At the same time, taking into account the continuous promotion of private network segments, including emergency response, railway and other industries, we adjusted the 24-25 net profit forecast to 6.8 billion yuan (original value was 6/750 million yuan), corresponding to the 23-25 valuation to 35/18/13 times, maintaining the “increase in holdings” rating
Risk warning: the risk of increased competition in the industry, the risk of geopolitics, the risk of litigation, the risk of technological iteration, failure to promote public-technical integration products as expected, etc.