Enter the listed company Hytera, seek new business growth points and return to the track

source:company.stcn.com

The impact of the overseas epidemic and the external environmental pressure have made Hytera (002583) difficult for 2020. However, as the epidemic slowed down and orders resumed growth, traditional narrowbands were upgraded to broadband and intelligent products, and Shenzhen state-owned assets invested in support. Hytera, known as the “little Huawei” of the private network, is back on track.

A few days ago, at the Shenzhen Stock Exchange’s Hytera  Investor Open Day event held by the Shenzhen Stock Exchange, Hytera’s director and general manager Jiang Yelin said that as the epidemic is under control, domestic business has rebounded rapidly, and overseas business has spread across multiple regions. Achieve recovery growth. Since the beginning of this year, in addition to consolidating the original narrowband basic disk business, breakthroughs have been made in new products. There have been multiple projects in broadband, command and dispatch, and public-private integration. In the future, it will open up new market space and become a new growth point.


Expand to broadband intelligent products

Hytera was founded in Shenzhen in 1993. It has grown from a five-person entrepreneurial team to a leading industry segment with nearly 7,000 professionals worldwide, and is known as the "Little Huawei" in private network communications.

In the headquarters building of Shenzhen Nanshan Hytera, a group of investors walked into the listed company “Hainetta”. In the product exhibition hall, the "walkie-talkie" is an intuitive impression of investors on Hytera's products. However, in addition to traditional digital walkie-talkies and trunking systems, Hytera is involved in broadband trunking systems and multi-mode intelligent terminals, law enforcement recorders, command and dispatch systems, satellite communications, private Internet of Things and emergency communications products.

In the exhibition hall, a Hummer car and a motorcycle are integrated with different communication systems of Hytera. According to the staff, the traffic police cavalry with integrated cameras and edge servers can automatically process and transmit on-site forensic information to the background, greatly improving the effectiveness of law enforcement. In addition, a variety of intelligent robots and unmanned vehicles incubated by Hytera are becoming more mature and can be used in emergency rescue, reconnaissance surveying and mapping, anti-detonation and anti-terrorism application scenarios. One of the robots equipped with a micro drone swarm system, combined with Hytera's communication module, has more practical value.

It is understood that since its establishment, Hytera has been committed to providing dedicated communication and command and dispatch integrated solutions for customers in the public safety, emergency, energy, and transportation industries, providing a solid guarantee for the safety and stability of the city and the orderly operation of the industry.

Hytera is also the core drafter of China’s first dedicated communication digital trunking standard, and promotes the planning and formulation of next-generation technical standards for multiple industries. High-tech enterprises with mature applications have also undertaken R&D tasks for important subjects such as the national major scientific and technological project "Broadband Multimedia Trunking System".

At present, Hytera’s business covers the world, and its overseas business accounts for nearly 60%. It has more than 100 branches around the world, and has nearly 7,000 professionals from more than 40 countries. Together with thousands of partners, it is 120 Governments and industry users in many countries and regions provide special products and solutions that Yiru needs.

In addition, Hytera has several industry-leading sub-brands. Sepura, headquartered in Cambridge, UK, is a leader in European TETRA terminal products; Teltronic, headquartered in Zaragoza, Spain, is a well-known brand in TETRA system products and rail transit industry; Norsat, headquartered in Vancouver, Canada, is the world's leading professional satellite Communication equipment and solution provider; Sinclair, located in Toronto, Canada, is the world's leading smart antenna brand.


Technological innovation seeks new growth points

The impact of the overseas epidemic and the external environmental pressure have made Hytera's 2020 difficult for a time.

Entering 2021, the domestic business has benefited from the epidemic control, and the business situation has recovered quickly. Hytera ushered in a bumper season with the new signing of the order. Judging from the situation disclosed in the company's announcement, eight major project orders have been publicly disclosed so far this year, which has more than doubled over the entire year of last year. Among them, there are several large projects with more than 200 million yuan; in terms of regional distribution, in addition to domestic, large projects in Latin America, Europe, and Central Asia have been implemented.

In terms of performance, as the number of new orders signed in the second and third quarters of this year has increased significantly compared with the same period last year, Hytera has achieved profitability for two consecutive quarters, and revenue has resumed growth in the third quarter.

After consolidating the basic market of the original narrowband private network products, Hytera is also actively seeking new business growth points. Hytera continues to invest more than 13% of its annual revenue in research and development, and has established Shenzhen, Harbin, Nanjing, Hebi, Dongguan Songshan Lake, Badmünde, Germany, Cambridge, United Kingdom, Zaragoza, Spain, Vancouver, Canada, Toronto, etc. 10 R&D centers.

With continuous R&D investment, new products have been launched one after another. Jiang Yelin, director and general manager of Hytera, said that Hytera has continued to make breakthroughs in new services this year, with projects in broadband, command and dispatch, and public-private integration.

Public information shows that Hytera recently made continuous breakthroughs in new business. In the broadband field, Hytera and Guangdong Unicom signed a 5G+AI industry application platform-lightweight 5G user plane function research and development project, to actively explore the construction of 5G smart parks, and cooperate to promote industry private networks; in the field of command and dispatch, Hytera Won the bid for the Nanshan District Government Management Service Command Center project, and signed an order for the dedicated communication and command and dispatch platform service in the state of Bahia, Brazil, which provided a good demonstration effect for the subsequent expansion of domestic and overseas guidance intelligent integration business; the field of public and private integration, sea Nengda actively promotes the formulation of industry standards, and products such as integrated communication platforms, 4G law enforcement recorders, PoC terminals, and satellite communications have gradually been recognized by customers, and projects have been implemented in many places.

At the same time, Hytera has also won the favor of strategic investors. In September of this year, Shenzhen Investment Holding's win-win fund acquired 10% of Hytera's shares and became the second largest shareholder. Shenzhen's state-owned assets have become an investor in Hytera's battle, and will also play a synergistic role in the construction of the information industry in the Guangdong-Hong Kong-Macao Greater Bay Area in the future, and promote the company's expansion in the field of 5G industry private networks.

In response to the challenges of 5G+ industrial Internet, Hytera has launched a 5G+ industrial Internet "cloud-pipe-end" full-service solution, which has been successfully applied. Hytera participated in the Nanjing CRRC 5G+ network information transformation project, providing customers with a completely independent network of "exclusive" private network mode, carrying out information transformation in the factory assembly workshop and bogie workshop, creating intelligent production in the factory Line model project.