Smart City Plan Boosts Security Industry Development

Based on the determination of 90 pilot cities at the beginning of this year, the Ministry of Housing and Urban-Rural Development is currently preparing to launch the second batch of pilot cities for state-smart cities. Other statistics show that since the beginning of this year, financial institutions have invested more than 400 billion yuan in smart cities. The performance of related companies last year has already been demonstrated. Even in the traditional off-season in the first quarter, smart city-related companies still achieved satisfactory results in the first quarter.

Smart city investment skyrocketing According to Chen Jingping, general manager of Asia Pacific Delivery Division of Samsung Data Systems (China) Co., Ltd., smart cities have five elements: smart buildings, smart transportation, smart services, smart resources and infrastructure, Smart government.

As China's urbanization rate continues to rise, population inflation, drinking water hygiene, food safety, medical care and education, environmental pollution and traffic congestion have emerged, which have spurred local investment in smart cities. At the end of January 2013, the Ministry of Housing and Urban-Rural Development formally established pilot cities for the construction of smart cities in 90 countries. The Ministry of Housing and Urban-Rural Development is now preparing to launch the second batch of pilot cities for state-smart cities.

The Ministry of Housing and Urban-Rural Development will cooperate with China Development Bank and invest 80 billion yuan in pilot projects for the construction of smart cities. The two commercial banks also promised to provide credit lines no less than the CDB to support the construction of smart cities. Other investment institutions also signed an investment quota of 200 billion yuan in early April. Based on a rough estimate, the relevant investment will be more than 440 billion yuan.

Yin Shengji, an analyst at Minsheng Securities, pointed out that investment weights are mainly focused on medical information, intelligent transportation, and safe cities. Investment in the three major areas during the 12th Five-Year Plan will reach 800-1200 billion yuan and 2400-2800 respectively. 100 million yuan and 350 billion yuan.

Listed companies benefit significantly The number of cities in China that have proposed smart city plans has exceeded 300. According to industry insiders, after the Ministry of Housing and Urban-Rural Development determines the first batch of pilot cities, more pilot cities will be added in the future, and the corresponding investment will be further increased. The market space of smart cities can be expected.

Smart city investment has been effective in driving the performance of listed companies. Taking the intelligent traffic sub-block as an example, the net profit of 18 A-share listed companies in 2012 was 3.972 billion yuan, an increase of 28.06% over the same period of last year. Among them, Dahua, the leading security video surveillance company, recorded a net profit of RMB 700 million in 2012, a year-on-year increase of 85%, with the largest increase in performance. The first quarter was an off-season for bidding in the software industry. However, there are currently seven companies in the eight smart transportation concept companies that have announced their quarterly reports achieving growth. Among them, Yitong Technology's net profit growth in the first quarter reached 181%.

However, there are also problems such as incomplete planning, fragmentation among departments, fragmentation, etc. Li Anmin suggested that the construction of smart cities must be planned as a whole, emphasizing the accuracy of urban positioning, structural optimization, functional coordination, and financial integration to avoid redundant construction.