Aerospace Map (688066): Rising Star of Synchronization and Navigation Application Services

Aerospace Map (688066): Rising Star of Synchronization and Navigation Application Services
The company went public according to the first criterion. The company is a leading domestic early warning and Beidou navigation satellite application service provider.Aerospace Hongtu is a leading domestic early warning and Beidou navigation satellite application service provider, providing basic software products, system design and development and data analysis application services for governments, military and enterprises (including basic software, system design and data analysis revenue in 2018) Accounted for 5%, 86%, 9%). Industrial policies escorted the rapid growth of the satellite application industry.The satellite and application industry is a strategic emerging industry that the country is focusing on. The transformation and replacement of the government and relevant competent authorities have successively introduced policies and measures for satellite and its application industry, which has become an important force to promote industrial development.According to data from the Bureau of Industry and Commerce and China Research & Development, the domestic satellite re-industry scale reached 75 in 2018.800 million, as of July 2018, the number of related companies reached 2,194. The competition pattern in subdivided areas is significantly different.In satellite data processing, the competitiveness of enterprises is mainly reflected in the development of satellite application basic software platforms. Due to the large investment in the development of satellite application basic software platforms, the technology is complex, the updates are fast, and the professional biology is high.A few companies participated in the competition of basic platforms; in the previous industry applications and service exchanges, because this downstream area has entered thresholds compared to upstream satellite launches and mid-stream data processing areas, the application area has generally shown a decentralized competition pattern, which has not yetAbsolute market leaders emerge. The company has made achievements in basic software platforms, forecasting applications and navigation in non-civilian areas.In terms of basic software platforms, the company has developed a completely independent and controllable vertical image processing basic software platform PIE and Beidou map navigation basic software platform PIE-Map. Such software platforms are difficult to develop, have long development cycles, and can be alternated quickly.It is difficult to catch up in a short time. At present, the company has a total of 106 software plug-ins for the research and development platform. In terms of early warning applications, the company has continuously sustained more than 10 steps in ground observation systems in land, meteorology, ocean, water conservancy, 杭州桑拿网 earthquakes, and civil disaster reduction.The advance research and system development of applications in various industries have promoted the industry demonstration applications of high-scoring satellites. The ability to provide comprehensive services for multiple regions and industries has already existed; in terms of navigation for non-civilian: the company has obtained the “Beidou Civil Division ServiceTest Unit Qualification “and participated in the construction of Beidou satellite project. From 2008 to 2018, it launched a total of 30 civilian reflection satellites. The company participated in the design of 23 satellite ground systems or application systems, accounting for 76.67%. Profit forecast and estimation.It is expected that the company’s net profit attributable to mothers will increase by 25 in 2019-2021.4%.In view of the company’s consolidation of the core basic software platform in the field of early warning and Beidou, and will benefit from the above-mentioned early warning and the continuous expansion of the downstream application space of Beidou, referring to the valuation of the aforementioned A-share comparable companies, we give the company 30-40 times PE in 2019Estimated value, corresponding to the market value range of 24-32 ppm, corresponding to the price range of 14.4-19.2 yuan. Key assumptions for investment requirements 1) The company has too many orders in hand, and the company has 1 orders in hand at the end of 2017-2018.600 million, 2.600 million, an increase of 86 each year.7%, 59.2%.With the continuous expansion of front and rear and navigation application scenarios, the system design requirements for specific segments are increasing, and the company’s system design and development business will grow steadily. 2) The data analysis application business is the key direction for the company to develop in the future. Facing the broad downstream data analysis market and the company’s vigorous expansion, this block of business will help maintain stable growth. 3) Since the company’s PIE platform is the only reorganized product in the overall central government procurement network, the popularity of conversion products will increase further and the potential data will become more and more abundant in the future. The company’s own software business will gradually increase its volume. Company highlights 1) The company is a leading domestic reverse and Beidou navigation satellite application service provider. The company will continue to benefit from the continuous promotion of conversion policies and the continuous expansion of the downstream service market; 2) The company’s basic software platform (including image processing foundation)Software platform PIE and Beidou map navigation basic software platform (PIE-Map), re-application and navigation in non-civilian areas are competitive. 1) The company’s basic software platform gradually formed a substitution effect on the leading foreign basic software platforms; 2) The policy promoted a change in intensity, and the downstream application market demand surged to drive the company’s order growth. Estimates and target prices Because the company’s operating income and profit levels are stable and the profit model is mature, we use the PE method for valuation.With reference to A-share comparable companies, we give the company 30-40 times PE in 2019, with a corresponding market value range of 2.4-3.2 billion and a corresponding price range of 14.4-19.2 yuan; compared with the company’s net profit attributable to the mother in 2019-2021, the compound growth rate is 25.At 4%, 30-40 times the estimated level, the corresponding PEG is 1.2-1.6, within a reasonable range. Investment risks 1) Iterative risk of technological upgrade; 2) The opening of the satellite application industry may have an impact on the company’s operations; 3) The risk of termination of business qualifications cannot be approved or cancelled in a timely manner; 4) The risk of core talent loss;Risks of commissioning and reaching production may be lower than expected.