Cold Thoughts on the Beidou Industrial Chain

The Beidou system gradually replaced the GPS system in the military market has been fully recognized by the capital market. Combining the growth history of overseas giants, we believe that in the “Beidou 2.0 era” larger market comes from Beidou-based industry informatization solutions, companies with strong industrial chain advantages will be expected to grow into true Beidou leaders.

For the first time, it covered the Beidou sub-sector and gave an “overweight” rating. With the development of the Beidou second-generation system from Asia-Pacific coverage to global coverage, the Beidou navigation field is expected to evolve from the "1.0 era" to the "2.0 era." We believe that in the “1.0 era”, the breakthrough in core chips and the promotion of national defense applications are the focus of the market. In the “2.0 era”, Beidou applications will gradually emerge from the ivory tower and open up borderless expansion, covering the Beidou industry for the first time. , give "overweight" rating.

In the Beidou 2.0 era, the technology integration trend of “Beidou + X” was started. What we want to emphasize is that in the 2.0 era, Beidou navigation is not a narrow single technology. After being merged with other technologies, it is expected to open the “Beidou + X” borderless expansion model. The application of Beidou’s 100 billion yuan market is coming from here. The "technical guidance demand" situation will be very common. From the current situation of investigation, the modernization revolution of agricultural machinery brought about by the high-precision Beidou positioning and precision mechanical control; the integrated virtual reality application created by GNSS navigation+inertial navigation, integrated indoor navigation and outdoor navigation, is gradually entering people's lives.

Beidou 2.0 era, from a single product to the industry chain competition. We compared Trimble, TOMTOM, and Garmin, the leading players in the GNSS business in overseas markets, and found that TOMTOM and Garmin, which started with mass terminal products, are facing transformational pressure. TOMTOM is transforming its business application solutions and wearable devices. Garmin focuses on On the market of high-end navigation products and wearable products such as aviation and navigation, only Trimble has fully integrated GPS technology, mobile communication technology, precision mechanical control technology, and 3D laser scanning technology through “endogenous + epitaxial” methods to develop GIS. Integrated provider of industry solutions has achieved sustained high growth. Therefore, we believe that in the Beidou 2.0 era, the competitiveness of the enterprise will be integrated from the single device and the end product to the upstream and downstream software and hardware, and the enterprises with the advantages of the industrial chain will highlight their advantages.

China Haida, Hager Communications, Beidou Xingtong and Zhenxin Technology are preferred. In the "Guiding Opinions on Promoting the Healthy Development of Smart Cities" jointly issued by eight ministries and commissions on August 29, Beidou will bear the brunt of the need to speed up the promotion of new technologies, and application in specialized fields is expected to be popularized. The development of multi-technology integration and the promotion of commercialization in specialized fields will become a trend. Listed companies with industry chain advantages will fully benefit. Under this framework, we have selected China Haida, Hager Communications and Zhenxin Technology in the Beidou sector, giving it an "overweight" rating, and giving Beidou Xingtong a "careful overweight" rating.