Shanghai Steel Federation (300226): Focus on GPT technology implementation scenarios

華泰證券 ·  03/23  · Researches

Focus on GPT technology implementation scenarios

On March 22, experts from Wenxin Baidu conducted in-depth cooperation negotiations with the Shanghai Steel Federation in the field of AIGC. We believe that the company relies on data accumulation and scenario cards, and is expected to continue to benefit from the implementation of GPT technology. EPS for 2022-2024 is expected to be 0.76/0.93/1.18 yuan, respectively. According to the segmental valuation, industry data service revenue is estimated at 932 million yuan in 2023, with an average of 23E 10.6xps (Wind) for comparable companies, giving 23E 10.6xps; steel and silver e-commerce contributed 23E 171 million yuan to listed companies, and an average of 23E 27.4xPE (Wind) for comparable companies, giving 23E 27.4xPE (Wind), with a target price of 54.20 yuan, maintaining the “buy” rating.

Applying AI technology in multiple links, companies with rich experience in implementing AI technology actively use AI methods to empower information production processes and user product experience, and have good experience in implementing AI technology. In terms of improving the quality of data collection with AI technology, AI algorithm training on satellite remote sensing images completes identification, classification and calculation of port material, enables monitoring of global iron ore port inventories, and mutual confirmation between collection and research. Through the training algorithm for labeling a large number of sample data, high-frequency research of nearly all samples can be realized; in the “Steel Link Data” terminal product, the search function within the terminal is improved through knowledge maps, NLP and deep learning methods. The company has good technology implementation experience in the field of AI, which helps accelerate the implementation of new AI technology.

GPT technology has a good scenario foundation. New technology may accelerate revenue growth. The company's business covers multiple knowledge sorting, data analysis, and marketing promotion scenarios. In the industrial data service sector, there are services such as data subscription, business promotion, conference training, research and consulting, etc., involving multiple application scenarios for AIGC, intelligent search, intelligent marketing, and intelligent customer service. The company is experimenting with GPT AI technology in functional modules and scenarios such as information, search, report production tools (Mreport), big data prediction systems, and customer service to enhance the customer experience. The company has a good implementation scenario for GPT technology. We believe that with the gradual application of GPT technology, it is expected that it will further provide growth impetus for the company's related product and service revenue.

It has the advantages of data accumulation+scenario cards. Focus on the application implementation of GPT technology. We believe that embedded products and scenarios are an important implementation pattern for GPT technology. GPT models have shown strong capabilities in the fields of data, knowledge sorting and content generation based on content understanding. Vendors with data and knowledge accumulation and rich interactive scenarios are expected to benefit first. As a data and information service provider for the commodity industry, Shanghai Steel Federation has formed multi-dimensional data accumulation surrounding price fluctuations. Furthermore, the company also has rich content, knowledge generation, and marketing promotion scenarios. We believe that the company is expected to continue to benefit from the implementation of GPT technology applications.

Risk warning: The expansion of industrial data services is lower than expected; the risk of a decline in e-commerce transaction volume for steel and silver.

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