Artificial Intelligence and Internet Finance Double Star Shining
Category: Industry Research Institution: Anxin Securities Co., Ltd. Researcher: Hu Youwen Date: 2016-03-21
Market Review: Last week, the Shanghai and Shenzhen 300 Index rose 5.09%, the SME Index rose 9.65%, the ChiNext Index rose 12.90%, and the Computer (CITIC) sector rose 15.83%. The top five stocks in the sector rose: Hang Seng Electronics, Oriental Communications, Jinzheng Co., Ltd., Jinqiao Information, and HyperText Software; the top five stocks fell: Great Wall Computer, Fangzhi Technology, Great Wall Information, Hezhong Sizhuang, and Xuanji Information.
Industry news:
President of the Supreme People's Court: Formulate judicial policies around Internet finance, etc.
Chen Zhaoxiong, Deputy Minister of the Ministry of Industry and Information Technology: 5G is expected to be officially commercialized in 2020.
The potential development space of the network security industry will reach a level of 100 billion.
AlphaGo defeated Lee Sedol in the final game, with a total score of 1:4 in the human-machine battle.
Baidu plans to test driverless cars in the United States and launch commercial models in 2018.
Company news:
Zhonghe Technology: The wholly-owned subsidiary intends to continue to provide no more than 300 million yuan in financial support to the energy-saving service business with its own funds.
Dingjie Software: Five shareholders reduced their holdings by a total of 30,339,469 shares through bulk transactions or agreement transfers, accounting for 15.11% of the share capital.
Hezhong Sizhuang: It plans to purchase 100% of Zhongkeyatu, 100% of Guangzhou Situli, 100% of Geo Electronics, 100% of Geo Optics, and 65% of Shanghai Titan by issuing shares and paying cash. The transaction price is 1084.68 million yuan, of which 18916,702 shares are worth 672.3 million yuan and the cash consideration is 412.38 million yuan.
Dashi Intelligent: Use 20 million yuan to participate in Shandong Yuxin Investment Management Co., Ltd., accounting for 20%; at the same time, the fund management company initiated the establishment of the "Shandong Luxin PPP Development Fund", with a scale of no more than 10 billion yuan.
Investment advice: Artificial intelligence continues to perform strongly, Internet finance strengthens across the board under the leadership of Hang Seng Electronics. The sharp rebound of the computer sector, which has experienced deep adjustments since the beginning of the year, is of great significance to increasing popularity. Market sentiment is recovering, and the good performance of the sector is expected to continue. Continue to focus on the two main lines of artificial intelligence and Internet finance: 1) Artificial intelligence: Continue to recommend the "white + black" combination: Oriental Net Li, Sichuang Medical Hui, iFlytek, Changgao Group, Hanwang Technology, and Keyuan Co., Ltd. In addition, many companies have recently entered the basic fields of artificial intelligence such as image recognition or fingerprint recognition. We also recommend paying attention to such companies with relatively large expectations, including Shensi Electronics, Yuanfang Optoelectronics, Tonghuashun, Zhongyuan Xiehe, Beibu Gulf Travel, Aofei Animation Kunlun Wanwei, Jiangnan Chemical, etc.
2) Internet Finance: Hang Seng Electronics benefited from the rapid development of the asset management industry and its high business prosperity. The performance in the first quarter is expected to exceed market expectations, and its leading role in the sector will be very obvious. We continue to recommend Hang Seng Electronics, Gaoweida, Zhongke Jincai, Yingshisheng, Oma Electric Appliances, and Jinzheng Co., Ltd.
Risk warning: The industry development is not as good as expected.
Dingjie Software (I want to consult on the live broadcast of individual stock information intraday)
Dingjie Software: Industry 4.0 products are complete and promotion is accelerated, waiting for dawn to arrive
Dingjie Software 300378
Research Institution: Haitong Securities Analyst: Zhong Qi Date of Writing: 2015-10-29
Investment Points
Revenue is basically flat, and the increase in investment has led to a decline in net profit. In the first three quarters of 2015, the company achieved revenue of 766 million yuan, a slight increase of 0.13% year-on-year; and achieved net profit attributable to common shareholders of listed companies of 29.11 million yuan, a year-on-year decrease of 14.07%. In the third quarter, the revenue was 246 million yuan, a year-on-year increase of 0.41%; the net profit attributable to common shareholders of listed companies lost 7.48 million yuan, an increase of less than the loss value in the same period last year. The company's business transformation has continued to increase investment in the fields of smart manufacturing, omni-channel retail, and micro-enterprise Internet, resulting in a year-on-year increase of sales expenses by 1.85% and an year-on-year increase of management expenses by 7.27%, which has led to a company's revenue basically the same as the same period last year, but its net profit attributable to shareholders declined year-on-year.
Industry 4.0 product lines are complete, and the "Internet + Industry 4.0" strategy is promoted. In the third quarter of this year, the company launched a new generation of intelligent manufacturing solution T100, which is aimed at large, super-large enterprises and large groups. Based on the urgent demand of corporate customers to transform Industry 4.0, it integrates Internet + Industry 4.0.For medium and large customers, the company has launched the medium and large ERP product E10 in 2014. The company also invested in Aima Technology, which focuses on MES, plus the company's existing APS, SFT, PLM and other products. At this point, the company has basically complete new generation product lines for intelligent manufacturing and has a complete Industrial 4.0 product layout.
also established an industrial 4.0+ industry intelligent manufacturing system integration alliance with Advantech, a world-renowned intelligent system leader, and Dingxin Systems, and released a new development strategy of "Internet + Industry 4.0".
creates omni-channel retail to help the industry transform. Online channel retail has developed in full swing in recent years, and many merchants have switched to online to explore diversified marketing channels. The company has created an omni-channel retail model to achieve the integration of existing ERP with third-party payment methods and micro-payments, integrate physical, e-commerce and mobile e-commerce channels, and combine big data, socialization and mobile technology applications to assist the circulation and retail industry to integrate online and offline, create an interconnected middle platform, and realize omni-channel retail. In this regard, the company helps Tianhong Mall promote omni-channel transformation and is expected to be widely promoted in the future.
micro-enterprise interconnection to establish a small and micro-enterprise operation ecosystem. The company accelerates the growth of the number of online merchants with "pocket shopping" with A1 products. It has accumulated 33,000 users and continues to develop micro-enterprise business cloud. It will gradually build an ecological system for suppliers, manufacturers, logistics providers, channel dealers, retailers and even end users to provide one-stop service for online merchants.
profit forecast and investment advice. The company has nearly 30 years of industry accumulated experience, especially in the manufacturing fields of electronics, machinery, automobiles, fine chemicals, medicine, food and beverages. Against the backdrop of the transformation of traditional industrial intelligent manufacturing, it will significantly benefit the company's use of advantageous resources to promote the "Internet + Industry 4.0" strategy.
We expect the company's EPS from 2015 to 2017 to be 0.31 yuan, 0.55 yuan and 0.91 yuan respectively. Considering that the company is a scarce target for "Industry 4.0", we are optimistic about the company's expansion in the domestic market. The target price in the next 6 months is 71 yuan, corresponding to 130 times of PE in 2016, and a "overweight" rating is given.
Uncertainty factor. New product promotion is lower than expected.
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