Qianfang Technology (002373): Joining forces with Ali to start a new chapter in development

Qianfang Technology (002373): Joining forces with Ali to start a new chapter in development

Ali Networks proposed a strategic shareholding to become the second shareholder, maintaining the “buy” rating on the company ‘s announcement on the evening of May 27. Xia Shudong, the company ‘s actual controller, and Zhongzhi Huitong, the parties acting in concert, believe that the number of CCB investments is subject to change.

The price of 12 yuan is transferred to Ali Networks for its total holding company 2.

2.3 billion shares, with a total transfer price of 35.

9.5 billion.

After the transfer is completed, Ali Networks will hold 15% of the company’s shares and become the company’s second largest shareholder.

At the same time, the company signed a cooperation agreement with Alibaba Cloud, and will develop collaboratively in the areas of intelligent transportation and edge computing.

We are optimistic about the development prospects of the company holding hands with Ali, and it is expected that the EPS for 2019-2021 will be 0.

64, 0.

82, 1.

04 yuan, maintain “Buy” rating.

  The company’s smart transportation business has a good synergy with Alibaba Cloud’s “urban brain”. The company is a leading manufacturer of smart transportation solutions, with a complete product line covering ETC, road network traffic monitoring, traffic management solutions, traffic layering design, traffic management.System integration, software custom development, control system delivery, front-end perception products, etc.

In 2018, the company achieved benchmarking projects such as “Zhongguancun West District Comprehensive Traffic Management” and “Chaoyang CBD Comprehensive Traffic Management”.

Alibaba Cloud’s “Urban Brain” is deployed and implemented in accordance with the five major application scenarios of urban traffic physical examination, urban police monitoring, urban traffic micro-control, urban special vehicles, and urban strategic planning.

We believe that the company’s smart transportation business is consistent with Alibaba Cloud’s “urban brain” in terms of scenarios and technological paths. The strong combination of the two parties is expected to produce good synergies and accelerate the pace of smart city construction.

  The company cooperates with Ali in the cloud-edge-end field to accelerate the development of the company’s intelligent networked business. The combination of edge computing and cloud computing is a key part of achieving unmanned driving.

The company actively deploys the intelligent networking industry, has successively launched electronic license plate products and vehicle-road collaboration solutions, and V2X products have passed the “three-span” interconnection and interoperability test.

Achieving autonomous driving requires the joint support of cloud-edge-end computing capabilities.

The company’s advantage lies on the marginal side, which is expected to take the lead in the future construction of smart roads.

Alibaba Cloud is a domestic IaaS giant. According to IDC data, Alibaba Cloud’s market share in China’s public cloud market reached 45 in 2018.

5%, far ahead of other manufacturers.

Ali also has strong technical reserves in the field of artificial intelligence. The respective high-tech layout high-precision maps and Chihiro location layout high-precision positioning are scarce resources in the field of unmanned driving.

The company and Alibaba Cloud have formed a strong 杭州夜网 alliance on the cloud-edge-end to promote the accelerated development of intelligent network connectivity.

  With the blessing of the giants, Qianfang embarked on a new journey of development. Under the background of the end of the C-end traffic dividend, Ali actively deployed the B-end smart city field, making full use of strong capital strength, technical strength and drainage capacity, and Ali became a participant in the strength of the smart city fieldBy.

Qianfang has been cultivating in the smart transportation industry for 20 years, accumulated and accumulated industry knowledge, and possessed consultative sales capabilities and large-scale project implementation capabilities that Internet giants lack.

The cooperation between Ali and Qianfang helps to integrate better industry solutions and achieve a win-win situation 杭州桑拿网 between Ali and Qianfang.

  We are optimistic about the company’s subsequent development and maintain the “Buy” rating. We are optimistic about the integration prospects of Ali after the capital injection and maintain the profit forecast.

Net profit is expected to be 9 in 2019-2021.

57,12.

24, 15.

48 ppm, corresponding EPS is 0.

64, 0.

82, 1.

04 yuan, corresponding to PE is 29, 22, 18 times.

Considering that the company’s subsequent development is expected to accelerate, maintain the PE target of 2019 at 35-40 times and the target price of 22.

4-25.

6 yuan, maintain “Buy” rating.

  Risk reminder: Government investment is less than expected, security overseas business development is less than expected, and industry competition is exacerbating risks

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