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  • Security industry: smart city, the upgrade is not only a concept


        We report systematic analysis of the latest developments of the demand side of the security industry: including the background of the peaceful city, size and mode of operation and profitability, as well as the wisdom of the city to the background as well as overseas intelligence urban development trend, and combined with the latest hot social event analysis in smart city the context of high-definition network, smart new requirements on the security industry. In the final analysis of the latest development trends and patterns of the security industry, and that the security industry is facing major opportunities for development, maintaining industry "recommended" rating.
        Safe City projects over one trillion size, central and western cities are the focus of future development. We estimate that the National Safe City project size of 2.8 trillion yuan, 800 billion yuan of video products, new demand for 120 billion yuan annually to the security industry, accounting for 40% of the security-year output; the current alarm and monitoring system construction of cities across the country have begun to take the scale of the eastern coastal city basically have completed two, three projects, the Twelfth Five security planning requirements for full coverage of the key urban areas, provincial and municipal level and county-level public security organs to complete the monitoring alarm platform database development, to achieve inter-regional, inter- departmental and inter-police information sharing.
        The wisdom of the city reflect the service-oriented transformation of the government, larger and stronger efforts to. The construction of a service-oriented government has now become an important goal of all levels of government reform, public service platform through the integration of resources, and promote smart city technology research and development and industrial construction. The United States, Japan and other developed countries in 2009 to build smart cities, information technology into every corner of the city. Compared to the safe city, digital city, smart city pay more attention to the analysis of the background, and cloud computing, Internet of Things is closely linked to, full of concepts and imagination.
        HD, network intelligence, security front-end upgrade real. Conceptual description of the smart city on the front-end product of the security industry, the real demand for HD, the network is necessary to ensure real-time analysis in the background. According to Apexis(produce high-end IP camera) predict that this year the world´s ordinary camera shipped about 40 million, network cameras, 8 million, of which more than one million IPC300 ten thousand. From the growth and future ordinary camera, the IPC to maintain more than 30% of HD IPC50%, HD and IPC trend is clearly alternative to traditional camera; intelligence has been reflected in the security, including face recognition, vehicle tracking, behavior, judgment , and will become the industry long-term impetus to the development.
        The government continued investment industry needs no fear. We believe that the expansion of urbanization and intelligent high-definition upgrade in the next few years will be an important driving force of the Government continues to invest heavily in security. Currently look like the security of Shenzhen, Guangzhou and other cities, "the breadth of coverage has been basically completed, the future of HD IP camera products and systems upgrades, and gradually the city´s" deep cover "; second-tier Midwestern cities," the breadth of coverage " not completed, the breadth and depth will be carried out simultaneously in the future. Security industry in the first half remained tight capital side, higher boom, we judge the future with the capital side to relax the security industry, under the impetus of the government will usher in a new wave peak, and industry applications, as well as the civilian market to start but will bring the medium to long term needs.
        Investment advice: we firmly optimistic about the security industry, and that the industry development trend of high-definition intelligent industry leading companies with strong R & D capabilities, advantages of scale and brand effect, will further vertical integration and globalization, leading companies be strong Hengjiang.
        Risk Warning: government security investment is lower than expected delays in the project and the back section of the problem, more powerful new entrants.

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