Xintian Technology: The first to benefit from the development of the Internet of things for the first time to give "overweight" rating

Smart watch collectors, 16 years performance regain growth

According to the company's 2016 earnings report, the company's annual revenue increased by 32.97%; net profit attributable to the mother's growth was 33.71%, which was clearly starting to accelerate growth compared to 2015. We expect that the growth contribution from the four tables will come from water meters, gas meters, heat meters, and meters. In addition, the company's smart business achieves a “hard to soft” layout. Currently, the related income volume has reached tens of millions of levels, and the follow-up is expected to become an important source of business growth.

17 years of accelerating growth: Accelerated meter penetration, increased market share of gas meter, and smart business volume

From the current penetration rate of smart water meters, the industry has a lot of room. At present, the penetration rate of smart water meters is less than 20%, and the annual sales volume is less than 20 million units. It is estimated that in the next 3 years, the penetration rate of smart water meters will reach 40%, corresponding to double the market space. Correspondingly, although the current penetration rate of the smart meter industry has reached 50%, it is a good opportunity for the company. After more than three years of deployment, the company has successfully entered large-scale customers such as China Resources, and it is expected to achieve an average annual growth rate of more than 50% in the next two years by increasing its market share. In addition, the company's endogenous extensions in smart agriculture, water and electricity are expected to be released and accelerated.

The Internet of Things benefits first: successfully connecting NB-IOT/Lora, and collaboration with smart services

At present, the company's NB-IOT technology has been docked on products such as smart water meters, and it has also acquired 51% of the shares of Hua Tao, a low-power wide-area network technology development company. In addition, the company has deployed a variety of IoT technology routing products, such as 470MHz-based GFSK/FSK wireless communication technology and Lora-based wireless spread spectrum communication and based on traditional wireless communication technologies. Under the background of the 17-year structural plus code Internet of Things, the three major operators are expected to benefit first. The company currently has hardware (product) + communication protocol docking + smart business cloud platform capabilities, while cooperating with Huawei, Ali cloud, operators, etc., have the potential to become a platform company.

The company is expected to be the first to benefit from the development of the Internet of Things, giving it the “overweight” rating for the first time

The company is the first domestic listed company to cover four kinds of smart watch products. With the increase of the penetration rate of smart water meters, the continuous entry of gas meters into large companies, the increase in market share, the replacement of smart meters, and the resumption of reforms on the agenda, etc. , The 2016 performance regains its growth and it is expected to accelerate growth in 2017. At the same time, the company has actively deployed smart meter reading systems under the Internet of Things. At present, it has completed the docking of standards such as NB-IOT and Lora, and has the potential for platform-based companies in smart water, agriculture, and energy. It is expected that the company's net profit for 2016-2018 will be 1.06/1.69/2.59 billion yuan, corresponding to 58/36/24 times P/E. The company is expected to be the first to benefit from the development of the domestic Internet of Things and be optimistic about the company's layout, giving it the “overweight” rating for the first time.

(Original Title: Xintian Technology: Intelligent Watch Gatherer's Internet of Things Benefits First)