Qianfang Technology (002373): Company’s Performance Maintains Steady Growth and Collaboration with Ali Strengthens Future Expectations
Event: The company released the third quarter report of 2019 and achieved operating income of 56.
930,000 yuan, an increase of 26 in ten years.
33%, net profit attributable to mother 5.
910,000 yuan, an increase of 20 in ten years.
54%, deducting non-net profit 5.
23 ppm, an increase of 35 in ten years.
The company’s third quarterly report maintained steady growth.
The company’s single-quarter operating income in the third quarter was 21.
40,000 yuan, an increase of 29 over the same period last year.
14%; net profit attributable to mother is 2.
1.7 billion, an increase of 6 every year.
57%; net profit after excluding non-recurring gains and losses is 2.
10 ‰, an increase of 34 per year.
04%, continuing the steady growth trend in the second quarter.
The company and Ali have joined hands in the construction of smart transportation, and future growth is expected.
Following the joint launch of the “Urban Brain Traffic Management Joint Solution” with Alibaba Cloud and Gaode in 杭州夜网论坛 August, the company released solutions such as smart highways and smart aviation at the Yunqi Conference in September, fully integrating the two parties in cloud computing and transportation.In the field, we will focus on promoting the application of the solution in the construction of smart cities in the future.
According to IDC’s forecast, China’s smart city technology spending will reach 38.9 billion US dollars in 2023, and the annual investment growth rate in 2019-2023 will remain at about 13%. The three core areas of smart grid, smart video surveillance and smart transportation will account for the total investment.With half the investment, the company can get more technical support and business introduction through Ali in the future to help business upgrade.
Intelligent security stands firm and leads the technological upgrade with the “Visual Wisdom Internet of Things” as its core.
Yushi Technology, a subsidiary of the company, focuses on intelligent security, constantly refreshing its best results in global competitions, and technology accumulation brings benefits. According to the “2019 Global Video Surveillance Information Service Report” released by IHS Markit, Yushi TechnologyThe ranking rose to the fourth place (based on the 2018 performance), and the rising ranking shows the company’s market influence.
Earnings forecast: We expect the company’s EPS for 2019/2020/2021 to be 0 respectively.
66 yuan, 0.
85 yuan and 1.
07 yuan, given a “buy” rating.
Risk warning: Government investment growth is slower than expected, and security overseas business expansion is lower than expected