Founded in 2010, Xi'an Side Electronic Information Technology Co., Ltd. is a comprehensive enterprise that provides equipment, systems and services for the military, emergency and energy fields with integrated sensing, broadband communication and intelligent equipment as its core business. The company is located in Xi'an National Civil Aerospace Industry Base, listed on the New Third Board in September 2015, stock code: 833477.
With fusion perception, broadband communication and intelligent equipment as its core business, the company has mastered many core technologies such as millimeter wave radar imaging technology, imaging millimeter wave radar and video information fusion perception technology, wireless broadband transmission technology, intelligent networking technology, autonomous control and intelligent auxiliary decision-making, and has been successfully applied to military, emergency, energy and other fields.
The company's main products are three:
1. Radar and accusation system
The company's radar products include radar launch components, low-altitude surveillance radar, ground individual radar, individual detection radar and other products.
Radar launch component products include C-band solid-state transmitter components, C-band solid-state transmitters, multi-channel radar receivers and ballistic millimeter wave receivers. Multi-channel radar receivers consist of plug-connected RF and INTERMEDIATE frequency modules, and each channel can receive and process signals independently.
The ballistic millimeter wave receiver is mainly used in areas with high volume and weight requirements, such as aviation and aerospace, and its structure is specially designed for anti-overload capacity, which can be flexibly applied to harsh environments with large vibration intensity.
Low-altitude surveillance radar is mainly used in the field of low-altitude surveillance (500m-3000m), in view of the characteristics of small effective radiation area (RCS) of various aircraft in low-altitude environment, slow speed, low elevation angle, etc., the application of pulse compression, pulse Doppler, constant virtual alarm detection and other signal processing methods can realize the detection and tracking of low, small and slow targets in the context of strong clutter, and provide effective data support for the control of low-altitude areas.
The radar detection system has a variety of radar target simulators, echo simulators and electronic countermeasure actuators to meet the semi-physical simulation, functional testing and performance testing requirements of radar and radar countermeasures in different systems and different application scenarios, and provide customized frequency synthesis and solid-state emission components, transceiver components to meet the application needs of different customers.
The company's radar detection products break through the traditional field flight test, there are long test cycles, high costs, complex environments and difficult simulations, difficult test reproduction, poor confidentiality and other difficulties.
Gradually realize the digitization process of the test range and test base, improve the test efficiency; at the same time, use the radar target simulator to generate the target track signal, accelerate the radar system development cycle, shorten the test cycle; use the radio frequency storage and forwarding technology of the radar target simulator to complete the function test of the radar system.
In addition to military radar, the company also has civilian radar products, such as:
HS-R300 4D mmWave Point Cloud Imaging Radar: The main function of the 4D mmWave Point Cloud Radar is to provide real-time environmental perception information in front of large transport vehicles in the mining area, including vehicle personnel, during the driving process. Vehicles and bumps and dented obstacles that may pose a driving hazard. Through the detection of distant (low-threat zone) targets and the 4D millimeter wave point cloud imaging of near-area (high-threat zones) targets, it provides information support and decision-making basis for vehicle autonomous driving.
HS-R500 60G traffic information detection radar: millimeter wave speed measurement radar working frequency 24GHz, using a single-shot multiple-recess microstrip antenna form, transmit frequency modulation continuous wave (LFMCW) signal, receive vehicle target reflected echo signal, measure the real-time speed and distance of vehicle target, mainly to achieve real-time speed measurement function for moving vehicle targets.
HS-R200 77G automotive millimeter wave radar: 77G vehicle-mounted millimeter wave radar adopts frequency modulated continuous wave (FMCW) working system, integrated, miniaturized design, easy to integrate in all kinds of cars, unmanned vehicles and special vehicles, can be applied to all kinds of vehicles anti-collision protection system, automatic driving assistance system, long-distance area monitoring system, blind area monitoring system and other fields, can provide effective target distance, orientation, speed and early warning information in real time for various complex road environments.
Millimeter wave refers to electromagnetic waves with a wavelength of 1 - 10 mm and a frequency of about 30 - 300 GHz. Millimeter waves were used in the early days of the 1930s for military uses such as radar detection, missile guidance, satellite remote sensing, and electronic countermeasures. The application of millimeter wave radar in the field of transportation can be divided into automotive end and road end. In recent years, millimeter-wave radar has been widely used in the field of automotive ADAS autonomous driving, mainly for ranging.
Millimeter wave radar technology is relatively mature, according to the frequency can be divided into 24GHz and 77GHz.
24GHz - 54.35% of the global market share in 2019, the detection range is 60m, called short-range radar. Mainly used in blind lane detection (BSD), lane departure warning (LDW), lane keeping assist (LKA), parking assist (PA), lane change assist (LCA), reversing assist (BSD), is currently a common product in millimeter wave radar.
77GHz - 2019 global market share of 45.52%, detection range 100-250m, known as long-range radar. It is mainly used in adaptive cruise (ACC), automatic emergency braking (AEB), and forward collision warning (FCW). AEB is a core function of millimeter-wave radar.
The company has both 24G and 77Ghz products. Competitors in this field are: Guorui Technology, Recco Defense (SZ:002413), Heertai (SZ:002402), Bosch, Continental, Hella, Huayu Automobile, Desay SV, Hikvision, Sensec, Hangzhou Zhibo, Xingyidao, Hayeight Technology, Suzhou Millimeter Wave, Shenzhen Anzhijie, Hunan Nalei, etc. According to OFweek statistics, the global millimeter wave radar market shipments CR5 in 2018 were 68%, namely: Bosch (19%), Continental (16%), HELLA (12%), Fujitsu Tensen (11%), denso (10%). It can be seen that it is not easy for the company to make a breakthrough in this highly concentrated market.
Due to the demand and level of automatic driving, the penetration rate of domestic millimeter wave radar loading has been continuously improved, and the overall market space has grown rapidly.
According to the Head Leopard Research Institute, the market size of the mainland millimeter wave radar industry increased from 150 million yuan to 2.35 billion yuan from 2015 to 2018, with a CAGR of 150.2%. Considering the rising demand for autonomous driving and the increase in demand for the number of millimeter-wave radars per bicycle, the market size of China's millimeter-wave radar is expected to reach 17.1 billion yuan in 2023, and CAGR is predicted to be 48.7% in 2018-2023.
The localization process of millimeter-wave radar continues, and there is a large space for domestic substitution in the future. The maturity of the 24GHz industry chain is high, and 77GHz is still in the initial stage of development.
At present, most of the millimeter wave radar products in the domestic market are 24GHz millimeter wave products, which mainly entered the Chinese sample in 2013, and have achieved large-scale mass production in 2018, and the supply chain has matured, with a market share of 51.2%. However, at present, domestic 77GHz has not yet achieved large-scale mass production
Domestic Recco Defense began to mass-produce millimeter-wave radar in small quantities in 2020, and Desay SV, Huayu Automobile, Sensique, etc. also began small-scale mass production, and Hetai is still under development. If Sid Electronics accelerates the progress, there is still a certain opportunity.
On December 31, 2021, SID Electronics announced that it intends to sign a "Project Cooperation Agreement" with Yancheng Big Data Group Co., Ltd., a subsidiary of Yannan High-tech Zone in Jiangsu Province.
The agreement stipulates that the company will invest in the establishment of a new company in Yannan High-tech Zone, and the total investment of the project company in the next two years will not exceed RMB 100 million, and the company is mainly engaged in the research and development, production and sales of automotive millimeter wave radar, intelligent traffic information detection radar, radar + video traffic information fusion sensing equipment.
Among them, the first phase of fixed asset investment of 50 million yuan, the new millimeter wave radar, radar + video traffic information fusion perception equipment production line, equipment purchase cost of about 43 million yuan. The project is operated by the subsidiary Hengsheng Anxin.
2. Navigation and control system
Based on the Beidou navigation terminal, the company focuses on high-precision cutting-edge satellite navigation technology and key product development in special fields, providing all-round and multi-field navigation application solutions.
Relying on the core technology group of high-precision satellite navigation and anti-jamming technology, it has formed a cluster of satellite navigation anti-interference technology, high-precision positioning technology, high-sensitivity satellite navigation technology, high-dynamic satellite navigation technology, satellite and other navigation technologies such as inertial navigation technology, and formed a series of "key components - terminal - system" such as satellite navigation receiving module, satellite navigation receiver, satellite navigation anti-interference antenna, satellite navigation enhancement system and so on.
Satellite navigation receiver products include Beidou/GPS satellite navigation receiver, Beidou/GPS anti-interference receiver, Beidou/GPS fast positioning directionalizer, high-precision satellite navigation receiver, three-mode satellite navigation receiver, high-dynamic satellite navigation receiver, etc.
From the perspective of performance characteristics, it can be divided into multi-antenna high dynamic receiver, non-differential high dynamic high precision receiver, pseudo-distance differential high precision receiver.
From the perspective of application scenarios and carriers, it can be divided into vehicle terminals, ship-based terminals, airborne terminals, and bomb-borne terminals. Among them, the airborne terminal and the bomb-borne terminal are limited by the application of speed, height, volume, weight, etc., and need to have the performance of high-precision high dynamic navigation and positioning, high-precision timing, which is difficult to develop and has high performance requirements.
The company pays special attention to the special application of navigation on the bomb platform and the airborne platform, focusing on high dynamics, high precision, low power consumption, volume limitation and rotation platform signal is blocked, etc., to provide users with high reliability, high quality modules, terminals and systems.
The company's navigation receiver products have entered the main areas of practical cooperation, including: main models, modified models and other airborne applications, surface-to-surface missiles, air-to-air missiles, air-to-ground missiles, surface-to-ground missiles and other bullet-borne applications, search and rescue radios and black boxes, stormtroopers, helicopters and nearly 20 models.
Satellite receivers are used to collect and process electromagnetic signals received by the antenna. The receiver receives the signal transmitted by the GPS or Beidou satellite, can capture the signal of the satellite to be measured according to the cut-off angle of a certain satellite height, and track the operation of these satellites to obtain the necessary navigation and positioning information and observation and measurement.
The received GPS signal is then transformed, amplified and processed in order to measure the propagation time of the signal from the satellite to the receiver antenna and interpret the navigation messages sent by the satellite. Finally, the three-dimensional position of the test station, the base to three-dimensional speed and time are calculated in real time.
Satellite receivers can be mainly divided into navigation receivers, geodesic receivers and timing receivers:
Navigation receiver: Mainly used for the navigation of motion carriers, it can give the position and speed of the carrier in real time. This type of receiver generally uses C/A code pseudo-distance measurement, and the single-point real-time positioning accuracy is low, generally ± 25m, and when there is SA influence, it is ± 100m.
Geodesic receiver: mainly used for precision geodetic survey and precision engineering measurement, high positioning accuracy, complex instrument structure, more expensive.
Timing receiver: Mainly using the high-precision time standard provided by satellites for timing, it is often used for time synchronization in observatories and radio communications.
According to Galaxy Securities estimates, the domestic military Beidou navigation market space exceeds 15 billion yuan per year. According to the US GPS defense budget data, the proportion of navigation receivers is about 1.6%. According to this calculation, the domestic military satellite navigation receiver market space is about 240 million per year.
Competitors in this field are: Mengsheng Electronics (SH:688311), Recco Defense, China Measurement Navigation (300627), China Electronics Technology Group Corporation No. 54 Research Institute, China Electronics Technology Group Corporation No. 20 Research Institute, China Electronics Technology Group Corporation No. 24 Research Institute, Haige Communications (SZ: 002465), Aerospace Star Technology Co., Ltd., Aerospace Long March Rocket Technology Co., Ltd., Nanjing Panda Handa Technology Co., Ltd., Xingwang Yuda (SZ:002829), Recco Defense (SZ:002413), Jinghe Electronics (KCB: A05350), Zhenxin Technology (SZ:300101), etc.
The gross profit margin of the company's navigation products (30.77%) is far lower than that of A-share peer Mengsheng Electronics (67.5%), Zhenxin Technology, etc., and the revenue scale is also very small, indicating that there is no obvious competitive advantage.
3. Wireless communication and system
Relying on the core technologies of radio communication and anti-interference technology, the company focuses on the research and development of next-generation wireless communication technologies and systems based on traditional military wireless communication products, especially the research and development of tactical system efficiency enhancement products. At present, the company's wireless communication and system products can be divided into communication products, data links and wireless ad hoc networks.
With the development of the form of war toward informationization and intelligence, the operational requirements of missile weapons being fully connected to the network and controllable at all times have made the ballistic data chain the basic configuration of missile weapons, and the development of missile weapons and equipment has accelerated the trend of "no chain and no guidance."
For example, the company's XDCX-03 lightweight surface-to-air data link can be used for missile data transmission. XDCX-03 airborne terminal is a comprehensive data link radio suitable for small and medium-sized patrol missile groups, which can enable air nodes to organize themselves and dynamically network to meet the combat function requirements of back-end flight control and strike control, node sensor information collection, and front-end image and video backhaul in the typical combat tasks of small and medium-sized cruise missile group detection and attack integration.
Datalinks are a type of tactical system performance enhancement system. Data link products are composed of system facilities, communication procedures and application protocols, through the data link, you can digitize the sensor data in the battlefield, through the loading of information pipelines to link enterprises.
Therefore, the data link itself is a sensor that links the digital battlefield, and is an information processing, exchange and distribution system for command centers, weapon platforms, and combat troops.
The company's data link products can realize the exchange of data information between airborne, bombborne, land and shipboard tactical data systems by adopting network communication technology and application protocols, so as to maximize the effectiveness of the tactical system.
The company is committed to the development and research of four major platform data links of landborne/airborne data links, bombs/drone data links, UAV measurement and control data links and deep space communication measurement and control data links.
Competitors in this field include Mengsheng Electronics, 712 (603712), Lightning Micro Force (301050.SZ), ST Kaile (SH:600260) and so on.
The gross profit margin of Mengsheng electronic communication data link is high, more than 70%, mainly due to the technical difficulty of such products. The overall gross profit margin of the SID electronic wireless communication sector is only 17%, which is a big gap with competitors.
In addition, on October 8, 2021, the company announced that it intends to sign an investment and construction contract with the Management Committee of Shanyang High-tech Industrial Development Zone in Shangluo City, Shaanxi Province, and invest in two phases in the next five years in Shanyang High-tech Zone, with a total amount of not more than RMB 430 million. 、
The first phase of investment of 130 million yuan (the company through fixed assets, intangible assets and monetary funds the total investment is not less than 104 million yuan; Shanyang High-tech Zone through monetary investment of not more than 26 million yuan), the first phase is planned to be completed and put into operation before the end of 2022, and lease 4,000 square meters of standardized plants to build military narrow space robots, composite materials production projects; the second phase of investment of 300 million yuan, mainly to build a composite material science and technology park, the second phase of investment combined with the actual production of the first phase to promote.
It can be seen that the company's business layout is very large, involving multiple fields. But the company is still small in scale, should it first focus on a certain direction, do deep and strong, and then gradually expand from the core business?
In 2020, the company adjusted the development expenditure recognized in the previous period to the research and development expense, resulting in a large change in the development expenditure. The company has appropriately adjusted the direction of research and development, and terminated and adjusted the intelligent transportation system (leishi integrated machine, millimeter-wave radar), a certain type of aircraft integrated electronic system, peregrine project (helicopter drone), traditional pulse radar, three-dimensional lidar, northern half I. generation and other projects that cannot form output value and promote within the validity period of the plan, these projects have not brought benefits to enterprises in 2020, if they continue to develop in the original direction, they still need to invest costs, and the company according to the actual operation situation, It was decided to adjust the R&D structure and terminate the above-mentioned capitalization projects.
Vernacular translation: the company's early research and development projects are too many and too chaotic, originally thought that it could bear fruit and blossom but many of them were adrift, so they lost money.
Therefore, the company itself is aware of the serious problem of blindly laying out stalls, and began to reduce research and development projects and focus.
In addition, the gross profit margin of each product line of the company is low, and there should be two reasons:
First, millimeter-wave radar, satellite navigation receivers and other products are the core parts of the chip, the company does not have self-research capabilities, are outsourced, such as the millimeter-wave radar industry upstream including MMIC, DSP chips, high-frequency PCBs and other links are controlled by overseas enterprises, then the company is more similar to a purchased chip and operating system of the computer assembly enterprises, the technical content is not high, the value created by themselves is low.
Second, the sales revenue of many product models of the company is very low, there is no mass large-scale production, and it lacks scale effect.
Therefore, the company may need a long time to adjust the business layout to promote the volume of various businesses, and the performance in the short term cannot be released.
Special note: The data and information in the article come from the company's financial report, brokerage research report, industry report, enterprise official website, public number, Baidu encyclopedia and other public information, I strive to report the content and views of the article objective and fair, but do not guarantee its accuracy, completeness, timeliness, etc. The information or opinions in this article do not constitute any investment advice, investors are responsible for any investment behavior at their own discretion, and I am not responsible for any direct or indirect losses arising from the use of the contents of this article. For more in-depth analysis of investment in the Beijing Stock Exchange and the New Third Board, welcome to pay attention to @Anfushuang focusing on the Beijing Stock Exchange