Qianfang Technology (002373) Quick Comment on Major Events: Alibaba Cloud’s Strategic Investment and Collaboration Exploit Smart Transportation + Edge Computing Market

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Qianfang Technology (002373) Quick Comment on Major Events: Alibaba Cloud’s Strategic Investment and Collaboration Exploit Smart Transportation + Edge Computing Market

Matters: The company announced on the evening of May 27 that the company’s controlling shareholder, the actual controller, Mr. Xia Shudong, and its concerted parties, Zhongzhi Huitong, who held more than 5% of the shares of CCB Investment signed a “share transfer agreement” with Alibaba Networks.If the transfer is completed, Ali Networks will hold 15% of the company’s equity and become the second largest shareholder.

In addition, the company also signed a “Cooperation Framework Agreement” with Alibaba Cloud Computing Co., Ltd. to jointly develop the smart transportation and edge computing markets.

Guoxin Computer’s point of view: Alibaba Group’s main company directly shares, becoming the second largest shareholder of a listed company, showing the advantages of cooperation.

The company continues to maintain a cooperative relationship with Alibaba Cloud. Technologists get in-depth docking and jointly develop and improve industrial solutions such as intelligent transportation and edge computing. At the same time, under the influence of the Alibaba brand, the solution promotion has developed rapidly, and the company is in the intelligent transportation industry.The leading edge will be consolidated.

With an open attitude, the company builds an intelligent transportation technology ecology. Following the cooperation with Baidu and the acquisition of Yushi Technology, the company continues to cooperate with giants to build an industrial ecosystem.

The company implements the development strategy of “One Wing and Two Wings” and expands the two business areas of “Two Wings-Smart Transportation and Smart Security”. At the same time, the company has deep research and development reserves for V2X, and the giants cooperate closely to open up growth space.

Continue to maintain the Air Force’s profit forecast. It is expected to return to its mother’s net profit in 19-21.

96/12.

38/15.

3.7 billion, corresponding to 0 EPS.

67/0.

83/1.

03 yuan, corresponding to the current total PE is 27.

4/22.

1/17.

8X, maintaining the “overweight” rating.

Comment: Mr. Xia Shudong, the actual controller, and Zhongzhi Huitong, a concerted person, holding more than 5% of the shareholders, CCB Investment, and the controlling shareholder of Alibaba Networks signed a share transfer agreement company.CCB Investment, a shareholder holding more than 5% of the shares, has signed a “share transfer agreement” with Ali Networks, and the transferor intends to use the above amount.

The price of RMB 12 was transferred to Ali Networks for a total of 222,993,866 shares of the company’s unlimited shares in circulation, with a total transfer price of 3,594,661,119.

92 yuan.

The current price of the transfer price is slightly discounted.

The transfer is 16.

12 yuan / share, compared with the closing price of 18 on May 27, 2019.

37 yuan / share, discounted by 12.

25%.

The company directly shares the shares with Alibaba Group’s shareholders.

It highlights Alibaba’s understanding of the company’s equity investment, and in the future, it will promote continuous and in-depth cooperation in product development and market coordination.

Strategic cooperation agreement with Alibaba Cloud and Alibaba Cloud Computing Co., Ltd. signed the “ Cooperation Framework Agreement ” on May 26, 2019. Both parties will make full use of the resources and technological advantages of their respective industries to jointly promote the intelligent transportation and edge computing fields.Implementation of the solution.

The two parties will conduct in-depth cooperation mainly in the field of intelligent transportation and edge computing. Specific cooperation areas include but are not scheduled: in the field of intelligent transportation, the two parties will jointly promote intelligent application solutions in the transportation industry; in the field of edge computing, the two parties will jointly promote “cloud + edge + end””A fully interconnected solution.

The company’s leading advantage in the intelligent transportation industry will be consolidated.

The company and Alibaba Cloud continued to maintain a cooperative relationship, and technical personnel were deeply connected to jointly develop solutions for the intelligent transportation industry.

Through this cooperation, the two sides will form better complementary advantages in various fields. The company will receive Alibaba Cloud’s advanced technology, product and service support, and promote the continuous upgrading of the company’s core technical capabilities such as artificial intelligence, which will help the company to develop more markets.Its competitiveness has been rapidly improved, further consolidating the company’s leading position in the field of intelligent transportation and other fields.

The company is deeply cultivating in the field of intelligent transportation, and the layout is going further. The company is actively deploying the LTE-V intelligent network connected vehicle industry. It has completed the research and development of roadside equipment RSU and on-board equipment OBU.Together with vehicles, Huawei, BMW, Audi and other module manufacturers and vehicle companies have successfully passed the world’s first “three-span” interconnectivity test, and for the first time achieved V2X connectivity between different industries, different countries, and different brands.

At the same time, the company launched a comprehensive smart road network solution, focusing on building road network operation monitoring and emergency command systems, intelligent transportation integrated management and control platform, highway traffic volume survey system, etc., based on the integration and management of large amounts of data for roadsThe management department implements key technical means and complete data support for road network operation monitoring, road network abnormal situation prediction, road network operation management, road transportation management, highway network scientific planning, coordinated operation management, emergency linkage disposal, and travel information services.

Alibaba has a deep layout in the field of intelligent transportation, and has significant synergies with the company.

Alibaba’s transportation brain is the core business of its urban brain and the pioneer of smart cities.

The urban brain brings together data (including government data, corporate data, social data, Internet data, etc.) scattered in various corners of the city, and uses cutting-edge technologies such as cloud computing, big data, and artificial intelligence to help manage the city.

It is small enough to command vehicles and reduce congestion; it is large enough to provide help for public resource allocation, macro decision-making and command, event prediction and forecast, and treatment of “urban diseases”.

On the technical level, the transportation brain integrates the capabilities of real-time, full-volume, full-network and full-video capabilities through the integrated urban computing platform, urban data resource platform and artificial intelligence (AI) open service platform.Let the technical value of big data, AI and cloud computing be realized.In addition, Ali also has 4 AI vision platforms: Tianyi, Tianying, Tianji, Tianqing, which can realize real-time real-time perception of traffic incidents and accidents in the city and automatic patrol.

The traffic brain has first eliminated the “farthest distance” from the camera to the traffic lights. At present, there are signal lights optimization, real-time identification of traffic incidents, priority dispatch of emergency vehicles, key vehicle management, social governance, and public safety protection.

At Hangzhou Yunqi Conference in 2018, typical cases in Hangzhou were disclosed: 2.

Version 0 will cover Hangzhou’s main urban area, Yuhang District, and Xiaoshan District, covering a total of 420 square kilometers, with a coverage area greater than 1.

It is expanded 28 times, takes over 1,300 intersection lights, receives 4,500 videos, comprehensively senses urban traffic through 7 vital signs, and directs more than 200 traffic police in Hangzhou through mobile terminals.

Benefiting from the traffic brain, Hangzhou’s traffic efficiency has been continuously improved.

Alibaba’s urban brain has been applied in more than ten cities including Hangzhou, Luzhou, Macau, Suzhou, Xiong’an, Deqing and Kuala Lumpur.

Alibaba’s superior development in intelligent transportation breakthrough technologies and platforms complements Qianfang Technology’s leading solution development capabilities to complement each other, and jointly develops more comprehensive intelligent transportation solutions.

Based on an open attitude, the company creates an intelligent transportation technology ecology and continues to improve the competitiveness of the industry. The company continues to cooperate with Baidu in depth and acquires Yushi Technology to strengthen the front-end equipment market layout.

On September 29, 2018, the company issued an announcement saying that it had signed a “strategic cooperation framework agreement” with Baidu Wangxun, and the company would deeply participate in the Baidu Apollo plan, and related to Baidu in the technical level of autonomous driving technology, ecological scale, and transportation applicationCooperation in other areas is currently under cooperation in the normal budget.

In addition, the company completed the acquisition of Jiaozhi Technology in March 2018. Jiaozhi Technology is a specially established entity that acquires Yushi Technology and directly holds 100% equity of Yushi Technology.

Company with 11.

94 yuan per share 3.

600 million shares for 43.

4 billion acquisition of Jiaozhi Technology 92.

04% equity, the company holds Jiaozhi Technology 95 after the transaction is completed.

32% equity.

Yushi Technology is the world’s leading supplier of video surveillance products and solutions. Video surveillance products are widely used in security systems in various industries such as public security, transportation, justice, education and medical care, enterprises and intelligent buildings.

According to the “Global Video Surveillance Information Service Report 2018” released by IHS Markit, based on the results of 2017, Yushi Technology ranked sixth in the global video surveillance equipment market with a market share of 2.

8%.

The company’s acquisition of Yushi Technology is expected to continue to grow and strengthen the smart security business, which will turn into a smart transportation business and generate synergies.

Investment suggestion: Alibaba Group’s shareholder company directly shares, becoming the second largest shareholder of a listed company, highlighting the advantages of cooperation.

The company continues to maintain a cooperative relationship with Alibaba Cloud. Technologists get in-depth docking and jointly develop and improve industrial solutions such as intelligent transportation and edge computing. At the same time, under the influence of the Alibaba brand, the solution promotion has developed rapidly, and the company is in the intelligent transportation industry.The leading edge will be consolidated.

With an open attitude, the company builds an intelligent transportation technology ecology. Following the cooperation with Baidu and the acquisition of Yushi Technology, the company continues to cooperate with giants to build an industrial ecosystem.

The company implements the development strategy of “One Wing and Two Wings” and expands the two business areas of “Two Wings-Smart Transportation and Smart Security”. At the 上海夜网论坛 same time, the company has deep research and development reserves for V2X, and the giants cooperate closely to open up growth space.

Continue to maintain the Air Force’s profit forecast. It is expected to return to its mother’s net profit in 19-21.

96/12.

38/15.

3.7 billion, corresponding to 0 EPS.

67/0.

83/1.

03 yuan, corresponding to the current PE is 27.

4/22.

1/17.

8X, maintaining the “overweight” rating.