China Sports Technology (603679) Company’s In-depth Study: Gold Rush 5G New Infrastructure Smart Street Light Trying to Pry 100 Billion New Markets
From the regional leader to the national leader, the 5G era has leveraged the 100 billion smart street light market companies to become the leading urban lighting in the western region. Through the entire industrial chain service solutions from lighting solution design, product development and manufacturing, project engineering installation and later operation management and maintenance, etc.Provide capabilities.
The company’s leading design, research and development, and perfect industrial chain layout are rapidly expanding into regional markets nationwide and will continue to improve in the future.
At the same time, 5G new infrastructure will open up hundreds of billions of new markets for smart street lights. The company has an early layout of smart street lights and a full range of products. It actively cooperates with Huawei, towers and other equipment vendors and operators to take the lead 武汉桑拿 in enjoying industry dividends.
Continue to benefit from the prosperity of the city’s lighting industry, with the expected expansion from the west to the whole country, and urbanization continues to advance (urbanization replaces 59 every year in 2018).
6%, continuing contradiction with expectations) + energy saving and environmental protection replacement (green energy saving lighting replacing traditional lighting trend is still continuing) + landscape lighting (night travel economic demand, lighting projects, etc.) to drive the industry’s continued prosperity; substitution, company design, research and developmentThe advantages of product types and the layout of the entire industrial chain are prominent, and the market is expanding rapidly from within Sichuan to outside the province. The market share of urban lighting business will continue to increase in the future, driving the company’s urban lighting business to continue to grow rapidly.
5G new infrastructure opens up hundreds of billions of new markets for smart street lights. From product to operation, it opens up huge growth space for the company. Regardless of height, spacing, power supply, security and management, smart light poles are natural carriers for 5G micro substrates.The ultra-dense networking of 5G micro-stations will drive the demand for massive smart light poles. Smart street lights are the direct beneficiaries of the 5G new infrastructure wave.
We estimate that the average smart light pole market space is 151.2 billion.
More importantly, smart street lights will bring a greater breakthrough to the industry in the business model.
Due to this important feature of smart street light collection data, this means that street lights are no longer a one-time engineering project, street lights will become a city’s data entrance, and the value of data generated by operations will become increasingly prominent, opening up a widermarket.
The company has laid out smart street lights early. It has developed 11 different categories of smart street lights, such as the window of the city, which can fully support 13 functions of smart street lights. Therefore, it can install itself according to needs.
The company has joined Huawei’s eLTE ecosystem and has cooperated with companies such as Tower and Inspur Software to jointly promote the construction of 5G Internet of Things wisdom.
The first smart street light operation project was responsible for Huati Technology. It is expected that most of its charging methods will be found by users, which is more operational.
Based on our estimates, we expect the internal income of the entire project to increase by 9%.
11%, with a payback period of approximately 8.
In 52 years, the operation model that is expected to become a smart street lamp has been rolled out across the country.
Investment suggestion: As a leading company in this segment of the field of road lighting engineering, the company has outstanding design capabilities and R & D advantages, benefiting from the industry boom and rapid expansion nationwide, and the traditional main industry promotes stable and rapid growth.
In addition, the company has actively promoted the field of smart street light engineering. Through the acceleration of 5G commercialization, the company has significantly benefited from the smart street light products and project operations.
The company’s 2018-2020 net profit is expected to be zero.
1.7 billion, corresponding to PE of 24 times and 17 times in 19-20 years, maintain “Buy” rating.
Risk Warning: The expected investment growth is faster than expected in the downlink, the smart street light project and 5G landing are not up to expectations, and the framework agreement is converted into a contract.