Event: On August 18, 2022, Shenzhen Urban Transportation Planning and Design Research Center Co., Ltd. (hereinafter referred to as “Shenzhen Transport”) and Tencent Cloud Computing (Beijing) Co., Ltd. (“Tencent Cloud Computing”) signed a “Strategic Cooperation Framework Agreement” in Shenzhen.
Sign a framework cooperation agreement to deepen strategic partnerships:
Shenzhen Communications is an important transportation decision support research institution in Shenzhen. Relying on the resources and positioning advantages of local enterprises in Shenzhen, the company provides overall solutions for smart urban transportation, and is a pioneer practitioner in the field of smart cities and smart transportation. After this agreement is signed, the company and Tencent Cloud Computing will further deepen their strategic partnership, and the two sides will develop in-depth cooperation in the field of smart transportation.
Strong alliances help expand products, based on the overall ecological platform development of smart cities:
Shenzhen Communications has rich experience in transportation project planning and positioning advantages, while Tencent Cloud Computing has strong technical advantages. This cooperation is mainly based on close collaboration and joint efforts to expand more business opportunities in the smart city field.
Specific content: Based on the idea of providing customers with smart city twins and smart transportation planning, design, implementation, operation and collaborative business development, the two sides each give full play to their advantages in urban transportation, smart city management and operation, cooperate closely, work together to expand market opportunities, and jointly provide professional services for smart transportation and digital twin city construction. At the same time, based on deep trust, we share data and information in big data delivery, intellectual property rights, joint development, and customized development of innovative technical cooperation, jointly research new products, new technologies and solutions, and jointly provide customers with smart transportation solutions.
This strong collaboration will help the two sides fully tap core resources, complement each other's advantages, and form a highly competitive strategic cooperation, thus forming a more competitive, more efficient, and more extensive cooperative business model in various fields such as smart city infrastructure construction and intelligent connected vehicle collaborative development, and promoting the continuous expansion of the company's business and products.
Profit prediction, valuation and rating: We are optimistic about the company's development in the field of smart transportation. We believe that with the continuous implementation of legislation and policies in the field of smart transportation, the market space in the smart transportation sector will further expand, and there is a possibility of rapid growth. As a pioneer in the smart transportation field, the company is expected to fully benefit. After this cooperation agreement is signed, the company's core competitiveness will be further enhanced with the continuous implementation of specific projects. We maintain the company's net profit forecasts for 22-24 to 196 million yuan, 232 million yuan, and 274 million yuan respectively. The current price corresponds to a dynamic price-earnings ratio of 27X in '22, maintaining the “increase in holdings” rating.
Risk analysis: Policy progress falls short of expectations, and there is a risk that cooperation projects will be implemented.