The daily positioning volume of Beidou satellite exceeds 300 billion times, and the satellite navigation industry may welcome development

Original title: The daily positioning volume of Beidou satellite has exceeded 300 billion times, and the satellite navigation industry is expected to usher in rapid development

Our reporter Ren Shibi

Recently, there have been continuous positive news in the field of satellite navigation. According to a recent report by CCTV News, more than 98% of smartphones applying for network access in China support Beidou positioning, and the daily positioning volume of Beidou satellites called by map software has exceeded 300 billion times. On February 6, the Ministry of Industry and Information Technology issued the Notice on Several Reform Measures of Telecom Equipment Access Licensing System, which proposed that satellite Internet equipment and functional virtualization equipment should be formally included in the access licensing management.

On February 22nd, the satellite navigation sector performed outstandingly. As of the close, the related indices rose 2.52% overall, outperforming the Shanghai Composite Index (down 0.46%), and achieved three consecutive positive days on the daily chart. Among them, Duolun Technology, China Satellite, Chengchang Technology, and Putian Technology hit the daily limit up, while Zhenyou Technology, Zhenlei Technology, Creative Information, and Shanghai Hugong also rose 16.69%, 12.17%, 8.73%, and 8.02% respectively.

Satellite navigation concept stocks have also been sought after by major market funds. On February 22nd, the satellite navigation sector showed a net inflow of funds, with a total of 975 million yuan in revenue. Among them, 21 concept stocks had a net purchase amount of over 10 million yuan, while concept stocks such as China Satellite and Creative Information had a net purchase amount of over 100 million yuan.

In response to this, Xu Shengxiong, the operation manager of the public offering product of Paipai Network, who was interviewed by Securities Daily, stated that the daily positioning volume of the Beidou satellite called by the map software exceeded 300 billion times, indicating that the application of the Beidou system in the field of transportation has made significant breakthroughs, laying the foundation for the widespread application of Beidou satellite navigation in various fields in the future. In the current era of continuous development of smart cities, the application of Beidou satellite navigation is in a rapid development stage. In the future, with the increasing maturity of Beidou technology, the application of Beidou satellite navigation in various fields will continue to deepen, thereby driving a significant increase in related demand.

The performance of related listed companies has also improved. According to data from Tonghuashun, as of February 22, 57 listed companies in the satellite navigation sector have disclosed their 2022 annual performance forecasts, and 19 companies are expected to have good performance. Among them, 8 companies including Duolun Technology, ST Linzhong, Hainengda, 3D Communication, Datang Telecom, ST Xinyan, Shenglu Communication, and Bolite are expected to turn losses around for the full year of 2022.

Public data shows that the overall output value of China's satellite navigation and location service industry has reached about 470 billion yuan. The high-precision location services brought by China's Beidou are further integrated into various industries this year, and regions such as Beijing Tianjin Hebei, Yangtze River Delta, and Pearl River Delta are developing the Beidou industry. At present, the number of Beidou terminals exceeds 8 million in the field of transportation and operation vehicles, and more than 1.3 million in agriculture, forestry, animal husbandry, and fishery. Shouchuang Securities stated that from 2017 to 2021, the compound annual growth rate of China's satellite navigation and location services market was 16.78%. Currently, the demand for high-precision satellite navigation and positioning services is gradually increasing. The market size of China's satellite navigation and positioning services is expected to exceed one trillion yuan by 2026, with an average annual compound growth rate of 16.69% from 2022 to 2026.

In terms of the development prospects in the field of satellite navigation, Pan Helin, co director and researcher of the Digital Economy and Financial Innovation Research Center at the International Joint Business School of Zhejiang University, told reporters that the application of satellite navigation in real-life scenarios will continue to increase, with the main demand coming from the transportation sector. Technologies such as autonomous driving require higher precision navigation and positioning, which is expected to drive an increase in demand for the application of the Beidou system.

Long Hao, Chairman of Jinding Asset Management, told reporters that with the continuous development and evolution of technology and the implementation of supportive policies, the application scenarios of the Beidou system represented by communication, navigation, remote sensing, etc. have become more diverse, and the development prospects of leading enterprises in related sub sectors are quite optimistic. With the satellite Internet being incorporated into the "new infrastructure", the integrated space space network is accelerating to land, and the related demand will gradually increase. The satellite navigation field is expected to usher in rapid development, and the profitability of related listed companies may continue to improve.

AVIC Securities suggests focusing on the following four main investment opportunities: firstly, the satellite manufacturing main line, which focuses on the improvement of enterprise revenue and profit scale and high-value subsystems under the transition of business model from project-based to mass production; Secondly, the main line of satellite communication focuses on the time rhythm of LEO satellite Internet construction and the value investment in the development of LEO satellite Internet; Thirdly, the main line of satellite navigation focuses on traditional leading enterprises in the upstream and midstream of the industrial chain, as well as enterprises expanding into emerging fields such as autonomous driving, and downstream enterprises laying out high-precision navigation markets and "satellite navigation+"; Fourthly, the main focus of satellite remote sensing is on the marketing and profitability of enterprises, as well as the dispersion and payment ability of remote sensing application fields targeted by enterprises.

【 Source: Securities Daily 】