Hytera (002583): Increased fee control boosted bottoming performance and increasing competition

Hytera (002583): Increased fee control boosted bottoming performance and increasing competition

Performance bottomed out and comprehensive competitiveness further strengthened.

The company’s 2018 revenue was 69.

35 ppm, an increase of 29 in ten years.

58%; net profit attributable to mother 4.

770,000 yuan, an increase of 94 in ten years.

72%.

The company is a national private network communication leader, with services covering the three major private network standards of TETRA, PDT, and DMR. By increasing sales network construction and marketing layout, it improves the integration efficiency of mergers and acquisitions, expands high-end manufacturing business, and increases refined management of expenses.Global comprehensive competitiveness and market share have been steadily improved, and performance has bottomed out.

  Strengthen the control of expenses and cash flow, and equity incentives increase development momentum.

In 2018, the company’s sales expense ratio / management (including R & D) expense ratio were 14 respectively.

96% / 22.

01%, down 2 every year.

12pct / 2.

24pct, the cost control has achieved remarkable results; the company strengthened its cash flow management, and gradually realized operating cash flow of 96.83 million yuan, which was normalized for the first time in three years.

Based on the medium and long-term strategy, the company also launched the first phase of equity incentive plan. The company has invested in a total of 1,000 people including directors, senior executives and qualified middle managers and core technology (business) backbones (including holding subsidiaries).Conditions 2018/2019/2020/2021 Net profit is not less than 6/7.

8 (or no less than 1.4 billion in 2018 and 2019 in total) / 10/12.

500 million US dollars, is conducive to improving the stability and enthusiasm of the team, and also shows the company’s confidence in the future development.

  The global private network market has vast space and continues to promote product upgrades.

Driven by the “modular number of revolutions” and “narrow bandwidth expansion” of private networks, the expanding demand in emerging markets, the rapid growth of new applications and O & M services, the stable growth of the global private network market, and the company’s acceleration of private network communications from narrowband to broadband, intelligentThe transition of new products, technologies, and new businesses such as chemicalization and information technology will transform 15% of sales 杭州桑拿 revenue. It will continue to focus on the innovation of R & D in the three key areas of “screen, tube, and terminal” to create a leading global convergence terminal., Integrated systems, integrated intelligent scheduling and other products, continue to promote product upgrades.

In the overseas market, it closely follows the national “Belt and Road” development strategy, and has made breakthroughs in emerging markets, with overseas sales revenue of 40%.

110,000 yuan, an increase of 24 in ten years.

twenty one%.

  Profit forecast and investment recommendations: It is estimated that the net profit attributable to the mother for 2019-2021 will be 7 respectively.

36 billion, 9.

44 billion, 11.

460,000 yuan, the current sustainable corresponding dynamic PE is 28 times, 22 times, 18 times, maintaining the “overweight” level.

  Risk warning: Private network communication demand is less than expected, and overseas business expansion is less than expected.