Zhejiang University's net new net profit in the first half of 2019 was 187 million yuan, up 19.17% from the same period last year. After August 20, Zhejiang University released its 2019 mid-term report. During the reporting period, the company realized operating income of 1.52 billion yuan, an increase of 0.20% over the same period last year; the net profit belonging to shareholders of listed companies was 108 million yuan, an increase of 16.54% over the same period last year; and achieved steady growth.
The company has a first-class hardware platform for cloud services in China, and has six first-class data centers in Hangzhou, Shanghai and other places, with a scale of 60,000 square meters, nearly 10,000 cabinets and more than 100000 servers. At the same time, the company has also built an accelerated network that interconnects with almost all the mainstream cloud computing platforms in China and the wide area network, and uses software-defined network technology to provide services for proprietary applications and customers. Relying on the hardware platform, the company has achieved the stable development of smart cloud services, smart city, smart business and smart life business. During the reporting period, based on the distribution of national data center business in Zhejiang, the company increased investment in the transformation, upgrading and construction of data center computer rooms, while upgrading two data center computer rooms in Hangzhou and Qingshan Lake in Lin'an, continue to actively promote the construction of Qiandao Lake Phase II computer room and Southwest Cloud data Center project. By strengthening the construction of hardware facilities, it will enhance the company's ability to provide services and provide a solid foundation for the development of the company.
Continue to increase investment in research and development of artificial intelligence products for the future
During the reporting period, the company continued to strengthen technological R & D investment and intellectual property construction, with R & D expenditure reaching 127 million yuan in the first half of the year, an increase of 55.65% over the same period last year. The company is comprehensively working in the field of artificial intelligence, independently developing and releasing the new "IN-Edge" distributed AI system of Zhejiang University in the platform layer. At the same time, the company uses artificial intelligence semantic analysis technology to focus on breaking through the application scene landing and optimization of the industry, forming a series of solutions for the government, education, tourism and so on. Among them, in the field of transportation services, the company completed the operation of mobile Internet services such as the vehicle refusal to hire complaint reporting platform and the off-site customer behavior analysis platform; in the field of business administration services, 478000 new semantic robots completed inquiries, an increase of 79.2% over the same period last year, with a praise rate of 97.9% In the field of financial services, the company combines its own semantic understanding technology with external voice recognition and speech synthesis technology to form a voice intelligent outbound call solution for the financial industry; in the field of social service, the company forms a semantic employment service solution to provide self-help question and answer consultation function for the external services of local employment bureaus. The application of artificial intelligence industry is gradually mature and will become the main growth point of the company in the future.
Investment strategy
Given that the company is at a relatively low valuation, the time has come for a medium-and long-term layout. It is estimated that the company's earnings per share from 2019 to 2021 are 0.20,0.24 and 0.29 yuan respectively. Give the company an "overweight" rating.
Risk hint: the construction of IDC center is not as expected and the promotion of artificial intelligence applications is not as expected.
