“Selected Summary: The company will continue to expand the number and amount of orders for large and medium-sized digital new infrastructure projects in other cities, opening up new growth space. Comparison of listed companies in the same industry: Yuncong Technology’s peers in the same industry Comparable companies mainly include Shangtang Technology, Megvii Technology, Yitu Technology, Geling Shentong, Yuntian Lifei, Arcsoft Technology, Danghong Technology, etc. Among them, Shangtang Technology, Megvii Technology, which are more similar to the company's business model Technology, Geling Shentong, Yitu Technology, Yuntian Lifei and other companies have failed to do so.”
1. Investment Highlights ◆There is a total of 1 company inquiries in this issue. On May 13 (next Friday), the science and technology board company "Yuncong Technology" will inquire.
2. ◆Yuncong Technology (688327): The company is an artificial intelligence enterprise that provides efficient human-machine collaborative operating systems and industry solutions. The four major areas of smart travel and smart business have gradually achieved mature applications.
3. The company's operating income from 2019 to 2021 was 807 million yuan/755 million yuan/1.076 billion yuan, respectively, and the YOY was 66.77%/-6.51%/42.49%, respectively. The annual compound growth rate of operating income for three years is 30.48%; the net profit attributable to the parent is -640 million yuan/-813 million yuan/-632 million yuan, and the YOY is -254.01%/-27.10%/22.24% in turn, the company has not yet achieved profitability .
4. According to the company's preliminary forecast, it is estimated that the net profit attributable to the parent company in 2022Q1 is about -117 million to -101 million yuan, a year-on-year change of 46.39% to 53.72%.
5. Investment highlights: 1. The company is one of the leading enterprises in the domestic artificial intelligence industry, Self-developed core algorithms such as face recognition, cross-border tracking, speech recognition and natural language processing have outstanding competitiveness.
6. The company performed well in the algorithm advanced index; in face recognition, in the face recognition algorithm test conducted by the National Institute of Standards and Technology in January 2021 , 1:1 face recognition project ranked first in 6 data set tests, 3 ranked second, 1 ranked third, and mask face recognition project ranked first; in terms of cross-lens tracking, in 2020 In May, the Duke University and the Chinese University of Hong Kong set a new world record in the data set test, and the mAP indicator 2 set a new world record in the Tsinghua University data set test, and won the championship in the first national artificial intelligence competition in 2020; speech recognition in 2020 In May, Librispeech and SwitchBoard data set test ranked first in the world; natural language processing ranked first in the world in the RACE data set test in July 2019, and ranked second in the world in the SQuad data set test.
7. 2. The company's products have successfully achieved large-scale application in many sub-fields such as smart governance, smart finance, smart travel, and smart business, and their commercialization capabilities have been tested. ; With the accelerated promotion of my country's artificial intelligence industry, the company is expected to benefit significantly.
8. The company's products are well promoted in the downstream application level, and it is expected to achieve good results Demonstration effect; in the field of smart finance, the company's products cover financial institutions represented by more than 100 banks including the six major state-owned banks, and in the field of smart governance, the company's products serve 30 provincial-level administrative regions across the country. Political and legal, schools, scenic spots and other types of application scenarios , the company's products in the field of smart travel have been deployed in hundreds of civil airports, including nine important airports in my country's top ten airports.
9. 3. The company is constantly looking for new application scenarios, and has undertaken digital new infrastructure business in 2020. A total of 8.5With an order of 100 million yuan, the opening of a new market has opened up a new growth point for the company.
10. The company has been undertaking government digital new infrastructure projects since 2020. In 2020, the company has won 2 new infrastructure orders in this application field, and 1 new infrastructure in 2021. Infrastructure orders.
11. In the future, with the smooth promotion of digital new infrastructure orders and the formation of revenue, through With the accumulation of experience and the improvement of the plan, the company will continue to expand the number and amount of orders for large and medium-sized digital new infrastructure projects in other cities and open up new growth space.
12. Comparison of listed companies in the same industry: Comparable companies of Yuncong Technology in the same industry mainly include Shangtang Technology, Megvii Technology, Yitu Technology, Geling Shentong, Yuntian Lifei, Arcsoft Technology, Danghong Technology, etc. Among them, companies such as SenseTime, Megvii Technology, Geling Shentong, Yitu Technology, Yuntian Lifei, etc., which are more similar to the company's business model, failed to achieve profitability. Even if the impact of changes in the fair value of preferred shares is excluded; therefore, the industry may not apply PE-TTM for valuation pricing.
13. Assuming the PS valuation, the PS of SenseTime Hong Kong stock (based on 2021 operating income) is 29.6X, and the PS (2021) of SenseTime is 14.4X, The average PS (2021) of comparable companies is 22X, or can be used as a reference for industry pricing.
14. Comparatively, the scale of cloud technology revenue is in the middle and upper position in the industry, although It is lower than Shangtang and Questyle Technology, but higher than Geling Shentong, Yitu Technology, Yunfei Lifei, etc.
15. ◆Risk warning: companies that have already started the inquiry process may still be unable to go public due to special reasons. There is a risk of inaccurate selection of listed companies in the industry, interpretation bias may exist in the selection of content data, and specific listed company risks are displayed in the text.