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Xinhang Technology: Backed by China Tower and 5G Dongfeng to build a closed-loop communications infrastructure industry

2019年04月04日来源:本站原创作者: xinhang 点击: Time: April 4, 2019: original Author: xinhang click: Times
In the 5G tuyere, the communication infrastructure industry is bound to take the lead to benefit. At the same time, communication tower equipment R & D, design, and production enterprises represented by Xinhang Technology (831093) are rising. On August 10 this year, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued a three-year action plan for expanding and upgrading information consumption (20

In the 5G tuyere, the communication infrastructure industry is bound to take the lead to benefit. At the same time, communication tower equipment R & D, design, and production enterprises represented by Xinhang Technology (831093) are rising. On August 10 this year, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the "Three-year Action Plan for Expanding and Upgrading Information Consumption (2018-2020)". The report proposes that by 2020, the scale of information consumption will reach 6 trillion yuan, with an average annual growth of 11 %the above. The plan also made clear requirements for 5G: to accelerate 5G standard research, technical trials, and promote the construction of 5G-scale networking and demonstration projects. According to the deployment, China will achieve 5G commercialization in 2020.

According to the statistics of CITIC Construction Investment, the scale of Chinese operators' 5G investment will reach 1.23 trillion yuan, a 68% increase over the 4G investment scale. At the same time, China Mobile, China Unicom, and China Telecom are accelerating the 5G deployment and have launched pilot or field tests in some cities; Beijing, Shanghai, Hebei, Guangdong and other governments are also rushing to deploy 5G. Guangdong Province proposes to use 3G Around the year, the Pearl River Delta will be built into a world-class broadband city cluster. By the end of 2020, the number of 5G base stations will reach 70,300 and a large-scale deployment of 5G networks will be launched.

As the only comprehensive communications infrastructure service provider of the three major operators, China Tower is currently the world's largest communications tower infrastructure service provider. In 2017, China Tower (00788) had a market share of 97.3% in the domestic communications tower infrastructure. In the 5G tuyere, the communication infrastructure industry is bound to take the lead to benefit. At the same time, communication tower equipment R & D, design, and production enterprises represented by Xinhang Technology (831093) are rising.

Located in Xiong'an, backed by the China Tower and rising on the 5G Dongfeng

According to the data, Xinhang Technology was formerly known as Hebei Telecommunications Equipment Factory. Hebei Telecommunications Equipment Factory was established in 1986. It is located in Guangchuan Town, Jing County, Hebei, which is known as the "Hometown of China Tower". It is a company mainly engaged in the production and sales of tower equipment. In 2010, Hebei Telecommunications Equipment Factory was restructured to Hebei Xinying Steel Structure Co., Ltd. after the restructuring, and then merged into Xinhang Technology.

Since 2011, Xinhang Technology has been widely recognized by the three major operators. In 2015, after China Tower received capital injection from the three major operators, Xinhang Technology became one of the first designated suppliers of China Tower. Authorized provinces include Shandong and Shanxi. , Hebei, Liaoning, Inner Mongolia, Beijing, Henan, Xinjiang, and Yunnan.

According to the annual report, in 2016, 2017 and the first half of 2018, Xinhang Technology's top five customers were 3, 2 and 4 of China Tower's branches respectively. Among the top 5 customers, China Tower's Revenue contributions exceeded 29%, 18%, and 38%, respectively.

The ability to secure orders from China Towers every year also reflects the competitiveness of Xinhang Technology in the construction of communications tower infrastructure. Xinhang Technology stated that as the construction and holder of the base station, the company mainly obtains orders from China Tower by participating in the regular bidding once a year, and then provides turn-key projects for production, installation and maintenance for downstream customers.

It is worth noting that Xinhang Technology is located in Taocheng District, Hengshui City, Hebei Province. The company is only 100 kilometers away from Xiong'an New District, a major 5G pilot in China. As a pilot city for 5G network construction, Xiong'an is expected to usher in the construction boom of communication infrastructure. .

According to the plans of global operators and three major domestic operators, China Mobile has announced that it will conduct field tests in five cities: Hangzhou, Shanghai, Guangzhou, Suzhou, and Wuhan. In 2018, more than 100 5G base stations will be constructed in these five cities; China Unicom set Xiong'an as a 5G pilot city, and planned 100 ~ 200 5G test base stations in Xiong'an New District, forming continuous coverage of the core areas of Rongcheng, Anxin and Xiongxian; China Telecom has already established Xiong'an and Shenzhen , Shanghai, Suzhou, Chengdu, Lanzhou and other six cities all opened 5G trials.

Entered the Central Umbale National Industrial Park to take the lead in the African market

While domestic 5G construction is in full swing, the “Belt and Road” policy is also continuing to advance. As a telecommunications infrastructure service provider for more than 30 years of deepening communications tower equipment, Xinhang Technology has also begun to seek overseas layout.

In May 2018, Xinhang Technology and China-Uganda Mbale National Industrial Park investor Tiantang Group signed an investment entry agreement. The two parties will build industrial parks, communication base stations, transmission and generation towers, and railway electrification equipment in the African market. Cooperation.

According to the agreement, the investment plan will be realized in two phases. The first phase of the project is a hot-dip galvanizing plant with an annual capacity of 50,000 tons and a 50,000-ton steel structure product. The project is expected to be officially put into production next May.

"The hot-dip galvanizing plant launched this time is of great significance. As we all know, the current mainstream anti-corrosion treatment method in the world is to use hot-dip galvanizing. Due to the characteristics of large investment, complicated process and high environmental protection requirements, no one in Africa has reached a scale. The large-scale galvanizing plant of Xinhang, the hot-dip galvanizing plant invested by Xinhang Technology this time fills the gap in the African market, can radiate the market of 300 million people in the Middle East and Africa, and meet the pain points of local steel processing companies. The landing of the steel-related industry has laid the foundation for supporting the industry, and at the same time, it has added a new and sustainable source of benefits for the company. "Yang Fei, general manager of Xinhang Technology, told Rhino Star.

It is worth noting that the construction of the Mbale National Industrial Park has also received great attention and support from leaders of China and Ukraine. In terms of policy support, the Mbale Industrial Park not only grants exempted enterprises ten-year corporate income tax, business tax, stamp tax and other policy bonuses, but also grants tax-free concessions to the industrial park in the import of raw materials, machinery and equipment, and workshops, which undoubtedly gives The enterprises entering the park have great profit space and huge emerging markets.

As the fastest-growing economy in the world, Africa is also the region with the most abundant investment returns in the world. A report from the United Nations Conference on Trade and Development stated that from 2006 to 2011, the average return on foreign direct investment in Africa was 11.4%, exceeding 9.1% in Asia, 8.9% in Latin America and the Caribbean, and 7.1% globally, The highest in the world.

According to the "Africa Competitiveness Report 2017" released by the African World Economic Forum, infrastructure is still considered to be the main bottleneck in Africa's development at this stage. Especially in the field of communication, the construction of communication towers in Africa is very scarce, and the existing ones are mostly built in the 1980s and 1990s. At present, there is still no enterprise specializing in the production and construction of communication towers in Africa. Therefore, the future communication infrastructure in Africa It is undoubtedly a blue ocean.

Yang Fei said: "Xinhang Technology will increase investment intensity in the African market in the future, not only limited to iron towers and steel structure industries, but also strengthen our development efforts in communication design and construction, power engineering, and municipal engineering. The market is building an excellent Xinhang brand. "

Building a Closed Loop in the Communications Infrastructure Industry

Since 5G construction has only officially started in 2019, after experiencing the peak of 4G construction, communication network construction has faced a gap in the past two years, and the capital expenditures of the three major communication operators have also shown a gradual decline. Take China Mobile as an example. In 2016, China Mobile ’s capital expenditure was 188.8 billion yuan, a year-on-year decline of 7%, and continued to fall by 6% in 2017. China Unicom also saw a 38% decline in 2017; the three major operators ’total capital expenditure in 2017 About 310 billion yuan, down 13% year-on-year.

At the same time, as the downstream infrastructure investment in the industry continues to shrink, the performance of listed companies in related fields has been affected. Bangxun Technology (300312), which is engaged in the construction of small base stations, has changed its net profit from 19.68 million yuan in 2016 to a huge loss of 142 million yuan in 2017. Xinhang Technology is no exception. In the first half of 2018, the company lost a total of 2.63 million.

Xinhang Technology said that the decline in performance was mainly due to the decrease in company orders due to the gap in the construction of the communication infrastructure network. At the same time, it was affected by the air pollution prevention work in the Beijing-Tianjin-Hebei region. From November to April the following year, heavy pollution was started During the weather emergency response plan, the galvanizing process and welding process could not be produced, resulting in the order received by the company not being executed normally.

Although full of confidence in the incremental market brought by 5G construction, the obvious cyclical nature of the industry and the tightening of environmental protection also made Xinhang Technology aware of the risks facing the company's current single business.

In fact, not only the industry's cyclical and environmental protection policies will affect the operation of communications infrastructure manufacturing enterprises. After the infrastructure operations of the three major operators are integrated into the China Tower, the high business dependence on the China Tower has also become a common problem facing the industry. Important question. For the communication infrastructure companies that originally had a low gross profit margin, this "big mountain" is gradually becoming a puppet for enterprise development. Facing this situation, in addition to being the first to deploy in overseas markets, Xinhang Technology also intends to create a closed-loop industry in communications infrastructure services in the industrial chain.

Yang Fei said, "Xinhang Technology has been doing epitaxial development. At present, the company is integrating a communications design institute. Through integration and integration of the upstream communication industry, the company will become a complete communications infrastructure contractor service provider. The system further enhances market competitiveness and business coverage. "This also means that the integration of upstream will become the development focus of Xinhang Technology in the next few years. As a well-established communications infrastructure manufacturer that has been cultivating the communications infrastructure industry for more than 30 years, can the company's accumulated research and development technology and industrial resources in the communications infrastructure industry be able to support Xinhang Technology's upstream communications survey and design, project consulting, and software? R & D and system integration to extend the industrial chain will be the key to its future development.