Event: the company announced that it contributed 7.35 million yuan to account for 49% of the shares in the form of monetary funds, and proposed to set up a joint venture "Xinjiang Tangli Science and Technology Co., Ltd." with Shangtang Technology in Urumqi.
Comments:
Hand in hand artificial intelligence the world's top algorithm manufacturers. Shangtang Technology, which focuses on original technologies of computer vision and deep learning, is the world's top artificial intelligence algorithm company, which can be applied in many industries. It has rapidly landed on the ground, including face recognition, image recognition, video analysis, self-driving, medical image recognition and other applications. The company currently serves more than 400 well-known enterprises and government agencies, including China Mobile Limited, UnionPay, Central Network Information Office, Huawei, XIAOMI, OPPO, Weibo Corp and so on, covering security, finance, smartphone, mobile Internet, robot, automobile and other industries. In July 2017, Shangtang completed $410 million in round B financing, setting a global record for single round financing in artificial intelligence and becoming the world's largest artificial intelligence unicorn company with the highest amount of financing.
The combination of "channel + technology" will not only be in Xinjiang in the future, but also refer to the national intelligent security market. With reference to the announcement, the joint venture is positioned as a technology company that provides artificial intelligence products and integrated solutions. With its excellent localization advantages, Lion mainly provides market channels, relationship maintenance, business solutions, project implementation, etc.; Shang Tang relies on its technical advantages, including core algorithms, mainly provides standardized, customized products, technical solutions and technical support. Through the integration of "market + technology", the two sides work together to create a science and technology company integrating R & D, sales, project implementation, technical support and after-sales service capabilities. In the initial stage, the joint venture company focuses on expanding the security market, and its long-term goal is not only in Xinjiang, but also to grow into a first-class domestic intelligent security product and service provider.
Investment suggestion: this cooperation will greatly help the company to improve the landing ability of artificial intelligence in security as the main application scenario, promote the extension of the industrial chain, and further enhance the core competitiveness and profitability. It is estimated that the EPS from 2017 to 2018 will be 0.88 yuan and 1.37 yuan respectively. Maintain the "buy-A" rating with a 6-month target price of 55 yuan.
Risk hint: market competition intensifies