Qianfang Technology (002373): Performance in line with expectations

Qianfang Technology (002373): Performance in line with expectations

The interim report results were in line with expectations, maintaining the “Buy” rating on the evening of July 19, the company announced that in the first half of 2019, it achieved operating income of 35.

86 ppm, an increase of 24 in ten years.

74%, achieving net profit3.

740,000 yuan, an increase of 30 in ten years.


Revenue in the second quarter of the year was 19.

41 ppm, an increase of 23 in ten years.

16%, achieving a net profit of 2.

121 ppm, an increase of 13 in ten years.


The company’s performance is in line with expectations, and Ali’s shareholding is expected to bring synergies. It is expected that EPS for 2019-2021 will be 0.

64, 0.

82, 1.

04 yuan, maintain “Buy” rating.

  Ali’s shareholding opens a new chapter in the development of the company. In May, the company signed a share transfer agreement with Ali Networks. After the transfer, Ali held 15% of the company’s shares and became the second shareholder of the company.

The company reached a strategic cooperation with Alibaba Cloud to jointly promote the implementation of solutions in the field of intelligent transportation and intelligent driving edge computing.

The company’s smart transportation business and Alibaba Cloud’s “urban brain” have excellent consistency in scenarios and technical paths.

Intelligent driving requires the joint support of cloud-edge-end computing capabilities. The company’s advantage lies on the edge side, and Ali’s advantage lies in the cloud.

The company and Ali Qiangqiang jointly promoted the promotion of smart transportation and accelerated the implementation of smart driving solutions.

  Full coverage of ETC products, increased capital, and the approval of the ETC service market after the ETC service market ‘s annual State Council government work report 武汉夜生活网 stated that “the national highway provincial toll stations will be basically cancelled within two years”, and the ETC industry needs to be released.

ETC companies have launched a full range of products such as OBU, RSU, CPC cards, and their business scope has covered Anhui, Zhejiang, Gansu, Shandong, Shanxi, Hunan, Hubei, Heilongjiang, Sichuan, Xinjiang, Tianjin, Tianjin, Jilin and other nearly 20 provinces.

On July 10, the company plans to participate in the capital increase of Shandong Expressway Xinlian Payment Co., Ltd.

Seco Xinlian is an ETC card issuer and operating entity of Shandong Expressway. It develops ETC + logistics, ETC + fueling, ETC + finance and other ETC after-car service businesses with ETC as the entry point.

The joint venture between the company and Secoin is expected to open up business imagination in the ETC service field.

  Smart security maintains a leading position, and Yushi’s AI algorithm breaks 重庆耍耍网 the world record for MOT. Yushi Technology is a leader in the security industry.

According to the “2019 Global Video Surveillance Information Service Report” released by IHS Markit, Yushi Technology ranked fourth in the global video surveillance equipment market in 2018, with a market share of 3.


In March 2019, Yushi’s computer vision and deep learning algorithms refreshed their best results in the Multi-Object Tracking (MOT) Challenge Global Competition.

In MOT’s latest data set MOT17Det, Yushi increased the AP of traffic scene object detection to 0.

89X, presenting the highest recognition accuracy rate and the lowest false positive rate. It broke the record set by famous AI algorithm companies such as Tencent Youtu and Shangtang Technology.

Yushi Technology’s computer vision algorithm capabilities have made progress, which is expected to further enhance product competitiveness.

  The results of cooperation with Ali are expected to be shown in the second half of the year. The companies that maintain the “Buy” rating and Ali have good synergies in areas such as intelligent transportation and edge computing. The collaborative results in the second half are expected to show.

Maintain profit forecast, and expect net profit for 2019-2021 to be 9 respectively.


24, 15.

48 ppm, corresponding EPS is 0.

64, 0.

82, 1.04 yuan, corresponding to PE is 25, 20, 15 times.

Comparable companies have an average price-earnings ratio of 29 times in 2019. Considering the company’s layout in the field of ETC and intelligent driving to broaden business boundaries and enhance competitiveness, the company is given a target PE of 30-35 times in 2019, corresponding to a target price of 19.


4 yuan, maintain “Buy” rating.

  Risk warning: Government investment is less than expected, security overseas business development is less than expected, and competition in the industry is exacerbated.