Agriculture into the drone market gold mine "horse"

Agriculture into the drone market gold mine "The staking circle" era is coming

Core point of view:

Agricultural plant protection drones, the star of tomorrow in the civilian drone market. The consumer-grade UAV market has a market share of more than 70%, and the pattern is relatively stable. In the new application scenario, agricultural plant protection is a new field that needs to be developed. What is different from consumer-grade drones is that in addition to the whole machine R&D and manufacturing, plant protection drones also include mid-stream operations and downstream auxiliary links. At present, agricultural plant protection drones are divided into two categories: oil and electric. Although the market is divided, we believe that in the initial stage, even in the future, the two methods will complement each other.

The demand base determines that the agricultural sector is another gold mine in the drone market. The demand base of plant protection drones includes four aspects: (1) The rural population is declining year by year, and the cost of agricultural labor is rising. Agricultural plant protection is difficult to use. Plant protection drones are an effective way to improve the efficiency of agricultural operations and reduce the cost of labor; (2) Accelerated arable land circulation, scale operation becomes an inevitable trend, providing a good basis for the promotion and application of plant protection drones; (3) Comparing human plant protection and helicopters Plant protection, drone plant protection has the advantages of automation and safety; (4) policy-intensive catalysis. Many provinces in China have successively issued relevant policies, or incorporated agricultural drones into the subsidy list, and the penetration rate of agricultural plant protection is increasing.

The industry is on the eve of the outbreak, and the era of "staking a horse" is coming. The agricultural plant protection drone market includes hardware sales and plant protection services. Currently, the industry's business model is selling special plant protection services from a single machine. According to our estimates, the plant protection drone service market is expected to exceed 50 billion yuan. With the change of operation mode, At present, the major enterprises in the industry have begun to enter the "horse race" moment, and have set up operation platforms to expand plant protection services. In 2016, major companies in the industry have shown a trend of double growth in both stand-alone sales and plant protection areas.

Major companies in the industry have their own characteristics and work together. At present, there are more than 10 enterprises in China for agricultural plant protection, including Guangzhou Feifei, Dajiang Innovation, Quanfeng Plant Protection, Wuxi Hanhe, Longxin General and other enterprises. At present, each enterprise has its own unique development. Among them, Guangzhou Feifei operates in a self-operated manner and focuses on the field of electric drones; Quanfeng Plant Protection, Wuxi Hanhe, and Longxin GM are all adopting a joint venture model with farmers. Institutions such as commerce and other institutions established joint ventures, and Longxin GM focused on Daejeon operations.

Investment suggestion: At present, the agricultural plant protection drone industry is in the early stage of development, and there are few directly related listed companies. We suggest focusing on the investment opportunities of the industry from two main lines: (1) Pay attention to the technological development route and business model of the leading enterprises in the industry. Changes, such as the new model of enterprises such as Dajiang, Feifei, Quanfeng, Hanhe, etc.; (2) Concerned about the related listed companies cutting into the field of agricultural plant protection drones, especially with independent research and development capabilities and core components Enterprises with supply capacity, domestic companies include Longxin GM, Deao Tonghang, Xin'an shares. The listing targets we recommend to focus on are: Longxin GM, Deao Airlines and Xin'an. 2016 will be the year of the development of the maintenance of drones. In the future, with the introduction of industry technical standards and the introduction of national support policies, the market prospects are expected.

Risk Warning: Lack of uniform industry standards leads to increased risk of promotion; policy risk; increased industry competition and risk of falling profits.

(Original title: Intelligent Equipment Series Report No. 10: Agricultural Plant Protection UAVs are in the right place and the "horse" era is coming)