Intelligent transportation and Wisdom-thing couplet two-wheel drive, the leading deep farming industry continues to grow. Qianfang Science and Technology is the leader in the field of intelligent transportation and intelligent couplet in China, with the mission of digital and intelligent transformation of transportation and IoT industry. relying on its core advantages in related business coverage, cloud edge full-stack technology, all-factor data and full life cycle services, we provide global transportation digital solutions.

Based in China, facing the world, the dominant position of the industry leader of Smart things is highlighted. Yushi Technology, a wholly owned subsidiary, occupies a leading position in the global market. It has won the global championship in the third list of ReID, KITTI and ICDAR, and won the Zhejiang Provincial Outstanding Patent Award for video analysis methods and devices.

As the "wave rider" of the AI era, the intelligent deep enabling industry opens the space for long-term development. 1) BABA's "Thousand ask Partnership Project" is the first batch of only transportation partners, and the potential of the large model field is promising: BABA's "Tongyi Thousand questions" focuses on more subdivided industries and vertical large models. The company has become the first batch of only transportation partners in the "Thousand ask Partnership Project", working together with the big model to explore a better solution for intelligent transportation. 2) full-stack AI capabilities, edge computing and other capabilities deeply empower industries: wholly-owned subsidiary Yushi Technology has the capabilities of full-stack AIoT enterprises. Based on the framework of general large model + industry scenario + training tuning, the company launched the AIoT CV industry large model, which subdivides the industry algorithm and business software with lower cost and faster iteration, better empowers ecological partners and drives the second transformation of the CV industry.

Cultivate new growth points of data elements, which is expected to lead the development of the industry. As the leader of intelligent transportation, the company has profound data accumulation in the field of transportation. The company is based on the accumulation of massive traffic data, in highway toll audit and other aspects of joint road network center and other partners continuous layout, intelligent operation potential is expected.

V2X empowered vehicles and roads cooperate to stimulate 10 billion market, and the industry leader is deeply involved in the construction of self-driving and other demonstration zones. 1) layout of global traffic data elements: the company's traffic business covers the core areas of intelligent transportation, intelligent traffic management, intelligent parking, intelligent road network, and many other areas of road network lifecycle management, such as data fusion, dispatching and command. 2) 10 billion market on the side of V2X road: under conservative / neutral / optimistic conditions, the market space of V2X on the side of highway and urban intersection is 488.58 billion yuan and 414.30 billion yuan respectively. 3) in-depth layout of self-driving demonstration zone / test field, urban intelligent transportation construction and other aspects: the company is the key construction unit of Beijing high-level self-driving demonstration zone, completing high-level self-driving tests many times, and establishing benchmarking effect in typical projects such as Beijing CBD intelligent intersection project.

Investment suggestion: the company is the leader in the field of Wisdom and Transportation, the field of Wisdom and Transportation has a leading position in the world, and the field of intelligent transportation has important growth potential in the future. In the future, the company fully combines with its own business and intelligence to open up long-term growth space in the AI era. It is estimated that the company's return net profit from 2023 to 2025 will be 780,973 and 1.68 billion yuan, corresponding to PE of 27X, 22x and 18X respectively, covering for the first time and giving it a "recommended" rating.

Risk hint: the landing of Wisdom business is not as expected; the company's product research and development and expansion are not as expected; product prices may fluctuate.