Chunzhong Science & Technology (603516) Comment on Major Issues: UHD Video Industry Plan Launches Display Control Leader to Welcome Development Opportunities
Matters: On March 1, the three departments jointly issued a notice of the “Ultra HD Video Industry Development Action Plan (2019-2022)”, stating that in accordance with the overall technical route of “4K first, taking into account 8K”, vigorously promote the development of the ultra HD video industryAnd related fields of application.
By 2022, the overall size of the domestic ultra-high-definition video industry will exceed US $ 4 成都桑拿网 trillion, the 4K industry ecosystem will be basically complete, and breakthroughs will be made in the development and industrialization of 8K key technology products to form internationally competitive enterprises.
Comment: The introduction of the action plan is expected to promote the rapid development of the transformation of the ultra-high-definition video industry chain.
The ultra-high-definition video industry includes various aspects of ultra-high-definition video acquisition, production, transmission, presentation, and application. We believe that the release of the “Action Plan” will help promote the entire video industry to accelerate the upgrade to high-definition, signal layer, transmission layer, and control layer.The exchange of multiple industry chains such as the display layer will yield benefits. It will bring development opportunities to many downstream industries such as radio and television, cultural and educational entertainment, security monitoring, medical and health, intelligent transportation, and industrial manufacturing.
As a domestic leader in display and control, the company is expected to fully benefit from the development of the ultra-high-definition video industry.
The company is a leading domestic supplier of professional video and audio display and control products and solutions, which widely replace the military, public security, exhibition halls, energy, transportation, finance and other downstream industries.
Moreover, the company has provided display and control equipment and solutions for important occasions such as the launch of Shenzhou Eleven, the 90th anniversary parade of the PLA, APEC meetings, G20 meetings, etc., and its competitive advantages are prominent.
We believe the company will fully benefit from the rapid development of the entire HD video industry.
The company’s growth logic is clear, and it is expected that new industries and new products will be continuously developed in the future, which is expected to open up new growth space.
Prior to the company’s listing, the company’s strategy was to concentrate all its resources on several subdivided areas for specialization, so the product line was relatively single and the coverage area was relatively alternative.
After the listing, the company restructured the industry expansion, product line expansion and overseas channel expansion gradually in three directions, thus opening a new chapter in development.
Investment suggestion: We believe that the company’s growth logic is clear, and the development of new industries and new products will help the company to start a new round of growth cycle, maintaining the predicted net profit attributable to the mother for 0-20 years.
8.4 billion, 1.
40 billion, 1.
8.7 billion, corresponding to 43 times, 26 times, 19 times the corresponding PE, maintaining the target price of 32 for the time being.
06 yuan, maintaining the “strong push” level.
Risk Warning: Downstream demand reduces risks, market competition intensifies risks, and new product development falls short of expectations.