Guangdao hi tech (839680)
Main points:
Guangdao hi tech: a provider of embedded software and hardware equipment for data perception and analysis. Founded in 2003, the company’s service scope covers urban governance, case detection, safe travel and other aspects. Its main business is the research, development and sales of data acquisition and analysis software products. Since its establishment, the company has focused on the urban public security track, began to layout the market, products and technical routes around the information security industry and urban public security field, and provided various data collection and analysis products to government departments at all levels, operators, enterprises and institutions. The downstream customers of the company are mostly concentrated in the three major telecom operators, forming a long-term and stable cooperative relationship. Except for the service fee income, the company’s income is the sales income of embedded software and hardware equipment. The operating income of 2021q3 company is 210 million yuan and the net profit attributable to the parent company is 39 million yuan. The growth rate remains stable and maintained at a high level. Guangdao wireless access system is the main revenue source of the company, accounting for a large proportion; In recent years, the revenue of Zhigan security community series products of the company has increased rapidly, and the sales revenue of 1h2021 has reached 42.35 million yuan, accounting for more than 35%.
Policies and incentives are issued frequently, and the construction of new smart cities has broad prospects.
Since the 18th National Congress, the CPC Central Committee and the State Council have attached great importance to the construction of a new smart city. Xi Jinping the general secretary pointed out that we should “coordinate the development of e-government, build an integrated online service platform, and promote the construction of a new smart city by classification”. According to IDC’s forecast, China’s smart city market accounts for 22.7% of the world. In 2019, the market scale of China’s smart city will reach 10.5 trillion yuan. It is expected that by 2022, the market scale of China’s smart city will reach 25 trillion yuan.
The concentration of urban public safety industry is low, and government expenditure continues to increase.
Urban public safety is a part of the construction of a new smart city. In recent years, the steady progress of industrial policies has further released the market space, and the overall development trend of the industry in the future is good. With the development of artificial intelligence, more and more manufacturers join this field, and the competition pattern with low market concentration and fierce competition will continue in the future. According to the financial budget statistics of the National Public Security Bureau, in 2021, the capital budget expenditure of the public security departments of all provinces / municipalities directly under the central government in the field of public security and the capital budget expenditure of information construction projects were 43.69 billion yuan and 2.21 billion yuan respectively, with an average annual compound growth rate of 2.48% and 4.37% respectively in recent five years. The national expenditure in the field of public security showed a stable upward trend.
Focus on urban public safety and outstanding profitability.
The company’s products cover data collection, data storage and calculation, data analysis and mining, data application and visualization in the field of urban public security, and provide data collection products and data analysis platform products for customers such as government, operators, enterprises and institutions. Compared with comparable companies in the same industry, the company’s overall operating revenue is small, but its profitability is outstanding, and its gross profit margin is stable and maintained at a high level.
Risk statement
Operational risk, financial risk, risk of investment projects with raised funds, risk of technology disclosure and brain drain, etc
