Hytera (002583): New products achieve landing in the field of pan-enforcement

Recent status of the company Hytera won the bid for the hardware equipment project of the Shenzhen Municipal Government Smart City Management Informationization Project, with a bid amount of 4,885.

70,000 yuan, which mainly includes the construction of the command 都市夜网 center’s information-based basic equipment, integrated communication platform, and a visual command and dispatch system covering the entire city, district, and street.

From the product side, the company’s successful bidding products mainly include the third-generation converged command center-related technologies and products, multiple dual-mode terminals, PoC terminals, and self-organizing networks.

The third generation command center, the company won the Shenzhen Urban Management again after winning the Nanshan Public Security Branch project in the domestic market last year; in the foreign market, following the APEC Summit in Papua New Guinea last year, this year it won the AsiaInfo Summit in Tajikistan.Both experience and case accumulation have been strengthened and improved.

The dual-mode terminal is a wide-narrow convergence series of terminal products promoted by the company. It provides scheduling + video solutions based on LTE and private network protocols.

PoC won the bid again after winning the bid of China Mobile Central Collection.

The issuance of a successful bid signifies that the company’s wide-narrow fusion products have landed, and the new business has expanded smoothly; it also reflects the market’s objective demand for wide-narrow fusion products, which confirms the company’s correctness of R & D.

We expect that the market space for new products will further increase, and internal revenue is expected to grow rapidly in the year to optimize the company’s product structure.

From the client’s perspective, this project is a successful application of the company’s private network communication end-to-end solution in the city-level public safety field, which helps to form a model point and further promote it to other cities in China.

We believe that the smooth implementation of the project will help the company’s business scope expand from professional law enforcement to flood law enforcement, and strive to broaden the company’s customer scope.

It is estimated that the proposed global growth private network market may reach 四川耍耍网 40 billion U.S. dollars and increase in scale.

We maintain the company 19e / 20e net profit6.

9.5 billion and 9.

08 million yuan, maintain outperform industry rating, maintain target price of 15.

00 yuan.

Currently corresponds to 19 / 20e 22.

5/17.

2x P / E with a target price of 19e 39.

The price-earnings ratio is 6 times, and the upside is 76%.

Competition in risky broadband products has intensified; new business market growth has fallen short of expectations.