Hytera (002583): Intensive bids for projects at home and abroad gradually transform to growth
Event: Hytera announced on June 2 that the company won the bid for the base station expansion and network optimization project of the Nanjing Municipal Public Security Bureau’s 350 megabyte digital system system, and the bid amount was RMB 6,862.
The project is mainly to expand the capacity and network optimization of the existing PDT digital integrated communication system of Nanjing Public Security Bureau, and provide corresponding software and platforms.
Comments: 1. The huge scale of domestic broadband expansion is about to begin. The company is expected to expand its first-mover advantage and announce that Hytera has won the bid for the expansion of the base station and network optimization project of the 350 million digital transfer system of Nanjing Public Security Bureau.
400,000 yuan, accounting for 0 of the company’s 2018 operating income.
99%, it is expected that the contract budget will have a certain positive impact on the company’s future total revenue and operating profit.
The current 350MHz Digital Integrated System (PDT) of Nanjing Public Security Bureau is provided by Hytera. The winning bid is the expansion and optimization of the existing network to build a wider and deeper PDT digital network for Nanjing Public Security Bureau., Nanjing Nanjing Public Security Bureau’s communication needs for daily police work, security of large-scale activities, important guard tasks, and emergency maintenance.
Affected by domestic macroeconomic factors last year, the domestic constructive progress is improving and slowing down, and the company’s PDT business revenue growth has been suppressed to some extent.
The successful release of the PDT expansion project of the Nanjing Public Security Bureau this time reflects that the upgrade of public security private network communications from analog to digital is continuing, and there is room for penetration of PDT in the national public security market.
Hytera actively participates in the formulation of domestic and foreign industry standards, and currently has a domestic PDT market share of more than 60%.
The strength is above the absolute leader in the PDT field, and the company is expected to replace the first-mover advantage in broadband construction.
This year, the company will continue to promote the construction and application expansion of the domestic public security PDT network, and further expand the domestic market share in the public safety field.
Broadband and narrowband convergence is the industry’s deterministic trend. In order to meet the needs of public security for informatization, the transformation communication system is gradually developing towards the system IP, business orientation, data broadband, and terminal multi-mode.
Hytera has accumulated many years of research and development in the field of wide and narrow convergence. Through the expansion of broadband LTE technology, the construction of a domestic broadband LTE proprietary network has gradually started. Hytera is committed to taking advantage of the industry’s wind and achieving double growth in performance and estimates.
2. The overseas market continues to make breakthroughs, and the company’s global competitiveness has greatly increased.Since 2019, the company has intensively won bids for overseas projects (including North America, Southeast Asia, Europe, South America and other regions) in excess of US $ 400 million.
The company’s overseas sales are mainly TETRA’s built-in communication system equipment, and its gross profit margin is relatively high.
The overseas market continued to make breakthroughs, and the expansion of cost control achieved initial results. The company’s performance is expected to continue to improve and maintain steady growth.
Since the company acquired Sappro, Sappro and its subsidiaries have successively won major bids worldwide.
The aim is to improve and fully reflect the integration effect of the company’s acquisition of Sepura; the reorganization also reflects the company’s strategic benefits of integration in the European and American markets.
At the beginning of this year, the company won the bid for a public safety TETRA terminal equipment project in a country in Western Europe, the amount reached 1.
1.3 billion US dollars, a good demonstration effect for the company’s expansion in the country and the entire European market, further confirming the improvement of the global competitiveness of the company’s TETRA products.
With the completion of the acquisition and the continuous deepening of integration, the company’s product line is more complete and its advantages are complementary, which can more fully meet this demand in different scenarios for different customers, effectively improving the company’s overall competitiveness andThe market influence has truly achieved 1 + 1> 2.
The company’s overall overseas revenue has mainly increased in Europe and the United States, developed regions such as the Middle East that started the construction of private networks earlier, and the countries along the “Belt and Road” have a relatively low revenue.
However, through the increasing demand for private network communications equipment in emerging market countries, it is expected to enter the high-speed construction period in the future.
Hytera has long-term cooperative relationships with policy banks such as China Development Bank and Guokou Bank, and has a deep understanding of overseas customers. The company plans to deploy emerging markets early in accordance with national policies, 杭州桑拿网 which effectively guarantees future business development.
3. Focusing on the main channel of private network communication, transforming the company’s global leading private network equipment and solution provider from extensive growth to profitable growth, always focusing on the professional wireless communication field, with a complete range from analog, digital to wideband and narrowband integration.Private network product portfolio, mainly strategic government public safety departments, emergency communications for public utilities and industrial and commercial enterprises, command dispatching and daily work communications.
In the future, the company will still focus on the main channel of the business, and by continuously expanding the market size and further controlling fees and increasing efficiency, it will realize a transition from extensive growth to profitable growth.
Last year, the company’s OEM business grew rapidly, mainly due to the changing characteristics of the procurement cycle of the private network communications industry. In order to improve the efficiency of capacity utilization, the company’s scale of income changed.
However, the company’s OEM is mainly concentrated in professional manufacturing and high-end optical modules, and its process accumulation also has a positive feedback effect on the company’s main business.
In the future, it is expected that the business will continue to maintain stable growth and provide effective support for cash flow.
In the first quarter of 2019, the company’s operating net cash flow3.
09 million yuan, the group’s receivables are in good condition, benefiting from the company’s internal fine management, integration of the sales team, and continuous optimization of the staff structure; meanwhile, the company’s sales scale continues to expand, and the repayment management is more active.
The company’s cash flow has gradually picked up. It is expected that through further expansion of the business, the company’s cash flow situation will further improve.
4. The new cycle of private network broadband is about to start, and the company’s progress is the first to benefit. Maintaining the “Strongly Recommended-A” rating benefits from the two rounds of bonuses for domestic narrowband PDT private network construction and the development of the Belt and Road overseas emerging markets. Hytera PDT, DMR, TETRA Broadband and narrowband fusion products are expected to maintain rapid growth.
Private networks have entered the era of broadband and narrowband integration, and demand for broadband data services has emerged.
The company’s wide and narrowband fusion products are gradually maturing and integrate the industry’s leading advantages, which is expected to benefit first.
The company’s revenue has continued to grow, its cost control has achieved initial results, and its operating efficiency has steadily improved, gradually transforming from extensive growth to expected growth.
It is expected that the net profit attributable to mothers for 2019-2021 will be 7, respectively.00 ppm, 9.
10,000 yuan, 11.
78 million, corresponding to 22 PE in 2019-2021.
3 and 13.
2 times, maintaining “strongly recommended-A” grade.
Risk warning: Sino-US trade friction, business expansion is less than expected, cost control is less than expected