Hytera (002583): Public-private integration is the first to break through overseas business and expand smoothly

Hytera (002583): Public-private integration is the first to break through overseas business and expand smoothly

Event description: The framework agreement between the company and an integrator from a certain country in Asia provides professional wireless communication broadband multi-mode smart terminals for public safety customers in a certain country. The total amount of this framework agreement is approximately 24 million US dollars (equivalent to approximately RMB 1).

6.9 billion US dollars), purchased from the company in batches over three years, and the end users are the country’s public safety customers and the country’s large-scale integrators.

Public-private integration achieved a breakthrough for the first time, and both market and product development: the contract amount is equivalent to RMB exchange rate1.

690,000 yuan, accounting for 2 of the company’s audited operating income in 2018.

44% can bring positive effects to the company’s revenue, and it is also the first overseas breakthrough of the company’s public exclusive integration of new business.

The public convergence market is the company’s focus on the expansion of smart terminal products beyond the traditional private network market. This project uses the company’s self-developed broadband multi-mode smart terminal, and for the first time achieves large-scale commercial use in the public safety field in this region of Asia.The groundbreaking iconic significance confirms the company’s broadband, intelligent product maturity and technological leadership, and is conducive to the company’s promotion in other local industry markets, and has a good demonstration effect for the follow-up company’s global expansion.

Overseas business expands smoothly and orders for large projects hit record highs: Since the beginning of this year, the company’s overseas business has further expanded, especially in market 南京夜网论坛 development. It has benefited from mergers and acquisitions with British Cypress, German HMF, overseas headquarters, and the Americas region.The “Belt and Road” market, Southeast Asia, Asia, Africa, etc. are the company’s advantageous markets, and due to the demand from many countries, once they enter the project, the sustainability of the project is very strong. For example, the Uzbek project has hundreds of millions of contributions last year.contribution.

Although the domestic traditional business may decline slightly, new businesses such as modified cars and special communication products are growing rapidly.

At the end of the last three quarters, the total amount of contracts announced for large projects was over US $ 1 billion, and the newly-acquired agreement was almost 1.2 billion, far exceeding the level of the same period last year.

In the first three quarters of the company, due to the increase in the proportion of modified cars and EMS business, while driving the increase in the scale of revenue, the overall gross profit margin declined, and the improvement in the proportion of new business was promoted.

Profit forecast: It is expected that the company’s net profit attributable to its mother in 2019-2021 will be 6 respectively.

2.3 billion, 8.

89 ppm and 11.

37 trillion, EPS is 0.

34/0.

48/0.

62 yuan, corresponding PE is 26/19/15 times, maintaining the company’s “recommended” level.

Risk reminder: The company’s orders are less than expected, the revenue from order confirmation is less than expected, the gross profit shifts, and the risk of trade war.