Intelligent transportation is the core, and data operation is a new starting point.
Intelligent transportation revenue and gross profit accounted for 46% and 53% respectively in 2018, which is the core business, mainly for integrated traffic control platform, static traffic solutions, track and high-speed railway and highway intelligent solutions. Hangzhou urban traffic cerebellum is the company's benchmark in the field. Smart medicine and intelligent justice are two important strategic directions of the company. In 2017, the Shenyang Regional population Health Information platform project and the "big data Laboratory of Judicial Administration" were successfully landed in Shanghai, marking an important breakthrough in the strategic direction of the company.
Through years of experience in smart city construction and "trinity" delivery, the company analyzes a large amount of project data and applies it to new businesses to form a commercial closed loop. As a result, the company's strategy has been upgraded to "city brain operator".
The strength of research and development continues to improve
The company's total R & D expenses continue to increase, from a patent point of view, the company has a large number of invention patents authorized every year, indicating that the company has always attached importance to research and development, and are around the main business. The project "Association Analysis platform and Application of Multi-source heterogeneous Spatio-temporal Positioning data" jointly completed by the company, Zhejiang University of Technology and Hangzhou Traffic Satellite Positioning Application Co., Ltd. won the first prize of Zhejiang Science and Technology Progress Award in 2018, which is an example of the improvement of the company's R & D strength.
Reach strategic cooperation with giants
The company formed a strategic partnership with BABA at the end of 2017 to carry out close cooperation in intelligent transportation and urban brain areas; in the same year, the company reached a strategic cooperation agreement with Huawei in the field of smart cities, focusing on promoting the construction of the Internet of things in the medical field, during which the Internet of things projects were successfully implemented in hospitals in Wuhan and Xi'an.
The cooperation with giants in intelligent transportation and medical treatment not only proves the strength of the company, but also lays a solid foundation for the improvement of big data, artificial intelligence and the transformation of business model.
Profit Forecast:
We estimate that the net profit from 2019 to 2021 is 182 million yuan, 225 million yuan and 264 million yuan respectively, and the corresponding EPS is 0.28,0.34 yuan and 0.40 yuan respectively, and the corresponding PE is 28 times, 23 times and 20 times respectively.
Risk tips: intelligent transportation industry orders decline; traffic cerebellum construction progress is not as expected; Shenyang project operation results are not as expected
