In 2016, the No. 1 Document of the Central Committee of the Communist Party of China (Several Opinions of the Central Committee of the Communist Party of China on Implementing the New Concept of Development and Accelerating Agricultural Modernization to Achieve the Comprehensive Well-off Society) was released today. The document pointed out that it is necessary to strengthen the construction of modern agricultural science and technology innovation and promotion system. These include: accelerating the development of high-end agricultural machinery equipment and key core components, upgrading the mechanization level of major crop production, and promoting the modernization of forestry equipment. Vigorously promote "Internet +" modern agriculture, apply modern information technology such as Internet of Things, cloud computing, big data, mobile internet, etc., and promote the transformation and upgrading of the entire agricultural industry chain. Vigorously develop smart weather and agricultural remote sensing technology applications.
Interpretation
Plant protection drone industry development policy environment is good
Since the Central Document No. 1 first proposed to “strengthen the construction of agricultural aviation†in 2014, the Central Document No. 1 of 2015 also emphasized that it is necessary to strengthen the driving role of agricultural science and technology innovation and make breakthroughs in the fields of intelligent agriculture. Governments at all levels actively responded to the call of the central government: the production side issued standards, the sales side provided subsidies, and the use side established specifications. We believe that with the release of the No. 1 Document of the Central Committee in the past 16 years, the subsidies for the purchase/service of agricultural drones nationwide will be a high probability event, and the theme of plant protection drones will continue to ferment.
In-depth understanding of the theme
The drone is in line with the theme of promoting the transformation and upgrading of the agricultural industrial chain in the No. 1 document.
First, the fundamental purpose of research and development, use of high-end agricultural machinery and equipment, and improve the level of mechanization is to improve the efficiency of agricultural production. Compared with manual spraying, the efficiency of plant protection drones can be increased by nearly 30 times, and the working time is greatly reduced while saving 20%-40% pesticides.
Second: the precise source of data is the basis of agricultural informationization. UAVs have unparalleled advantages in crop, climate data monitoring and information collection.
Plant protection drone market is broad
UAV plant protection has many advantages in terms of efficiency, applicability, utilization, safety and cost, and is the mainstream plant protection method in the future. The penetration rate of developed countries such as the United States and Japan exceeds 50%. The penetration rate of plant protection drones in China is only 3%, and the growth space is huge.
The largest market for plant protection drone industry lies in plant protection services. Assume that China's 1.8 billion mu farmland requires three times a year of pesticide spraying. The penetration rate of drones is 50%, the spraying price per mu is 10-20 yuan, and the plant protection service market is nearly 50 billion. yuan.
Investment Advice
In view of the continuous promotion of policies and broad market prospects, we are firmly optimistic about the future market performance of the plant protection drone. We believe that the core competitiveness of the UAV field lies in the strong R&D capability of the whole machine, the wide sales channels and the perfect service supporting system. The relevant target companies will be able to benefit in this round of plant protection drone boom.
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