Hytera(002583)2023-06-21 10:14Group 1: Financial Performance - The company's main business gross margin is over 50%, but the expense ratio is high due to significant investments in R&D and marketing channels, which have been impacted by the pandemic, leading to a decline in overall revenue [1]. - Since last year, the company has increased its focus on narrowband fundamentals and growth-oriented business expansion, resulting in a stabilization of main business growth [1]. - With the advancement of the "Belt and Road" initiative and the recovery of overseas business travel, the company's overseas business is expected to grow steadily, contributing to an increase in main revenue and a gradual reduction in expense ratio and steady improvement in net profit margin [1]. Group 2: Customer Structure and Market Outlook - Government and public safety business accounts for approximately 60% of the company's revenue, while the remaining 40% comes from energy, transportation, and industrial sectors [1]. - The specialized communication industry is characterized by rigid demand, which is less affected by economic fluctuations, and the increasing demand for social production and commercial activities will further boost this sector [1]. - As broadband and smart technology develop, customer needs are shifting from traditional voice-based command and dispatch to multimedia intelligent applications, prompting the company to expand its offerings from terminals and systems to command and platform solutions [1]. Group 3: International Business and Asset Management - Overseas revenue accounts for more than half of the company's total revenue, and it is expected to increase with the growth of the Belt and Road market [3]. - The company employs many foreign staff, achieving a high degree of localization in overseas operations, and engages in forward foreign exchange hedging to manage foreign exchange risks [3]. - The company's asset turnover rate is expected to improve through refined management and digital operations, while it focuses on its core business and follows a prudent investment strategy [3].