The big project won the bid, and the performance inflection point has arrived
Jinan Energy Group, the majority shareholder, released the digital Jinan Urban Comprehensive Perception and Warning Network Project informatization platform construction project. Synthesis Electronics took the lead in winning the bid, with a project value of 1,369 billion yuan. According to the announcement, the lead unit of the consortium is Synsi Electronics, and the member units of the consortium are Shandong Langchao New Infrastructure Technology Co., Ltd. and China Electronic System Technology Co., Ltd. According to the main business of the member units of the consortium and the agreed workload division, the project amount undertaken by the company is about 809 million yuan (the actual amount is subject to the final contract signing), accounting for more than 50% of the company's audited revenue in 2022. We judge that the part of the company's responsibility is mainly software. According to the bidding pace, construction will be completed in 2024, which will help the company accelerate business development in the smart city field, enhance smart city project design, construction and operation and maintenance capabilities, expand the company's influence in smart city construction and related fields, enhance the company's core competitiveness, and have a positive impact on the company's performance in the fourth quarter and next year. At present, the company has continued to lose money for several years. 2023 is the first fiscal year to answer the questionnaire. Management will be active and active, and an inflection point in performance is expected.
Building a Shensi Yunnai AI Computing Platform
Synsi Yunnao is a cloud service platform created for the company's AI cloud service business. It integrates AI multi-modal technologies such as knowledge big data, natural language understanding, intelligent dialogue, intelligent video analysis, text recognition, face recognition, and item recognition to create smart service hall solutions to provide innovative application services to customers in the energy, government and other industries. The five invention patents obtained by the company in November 2023 are mainly used in AI cloud service solutions related to Shensi Cloud Brain.
These patents can solve problems such as knowledge generalization transfer, noise judgment, and QA customization, and improve QA efficiency and user experience. At the same time, these patents also involve a distributed deployment method for a context-based question-and-answer system and a video synthesis method based on lip sync and enhanced attitude adaptation effects. The company continues to upgrade Shinsi Yunnao's business center, data center and IoT platform, empowering urban governance, government data construction, industrial safety and industrial quality inspection, and continuously iterative upgrading of data and algorithm models. In the digital Jinan Urban Comprehensive Perception and Warning Network Project informatization platform construction project that the company won the bid for, the company mainly undertakes software business, which has a high gross margin, and will also polish products and platforms related to Shensi Cloud Brain in the project.
AI multi-modal pioneer
In 2022, Jinan state-owned assets officially settled in, and technical genius Min Wanli was invited to join. Technology products are more competitive. On November 30, Shensi Electronics, a “chain owner” enterprise in the artificial intelligence industry chain in Jinan, hosted an artificial intelligence theme conference. The company currently has a number of technologies in the field of AI that can process multi-modal data, forming a complete cloud-based technology architecture. The Shensi Yunnao cognitive computing cloud service platform uses an open standard technology route to build various special technology engines and industry knowledge bases based on large-scale neural networks. It mainly includes the construction of intelligent platforms for knowledge interaction, speech recognition, face recognition, text recognition, Airbus service, etc., and the commercialization of a series of cloud service application systems. The commercialization of a series of cloud-side application systems for its customers has further highlighted the advantages of implementing scenario applications of artificial intelligence.
Huawei Kunpeng Shengteng is an important collaborator
On October 21, 2020, China Railway Jinan Bureau Group, Huawei, and Synsi Electronics jointly signed a cooperation agreement to carry out in-depth cooperation on digitalization, informatization, and intelligence in the railway industry, jointly promote the full application of intelligent video surveillance systems in China Railway Jinan Bureau Group, create innovative integrated intelligence and information systems, and protect the safe operation of railways. In 2022, the company was invited to participate in the 2022 China Computing Power Conference. At the “Shengteng Kunpeng Ecology” sub-forum, the company took the stage to receive a license as a partner of Huawei Shengteng Wanli. Up to now, the company's smart park and smart catering solutions have passed the Huawei compatibility test and joined the Kunpeng ecosystem; the intelligent video surveillance solution edge computing module has completed the compatibility test of the Huawei Atlas artificial intelligence computing platform Atlas500, becoming the first batch of Huawei Shengteng Wanli partners.
Investment advice
The company's 2023-2025 EPS is expected to be 0.10, 0.65, and 1.06 yuan, respectively, and the PE corresponding to the current stock price is 195.41, 31.04, and 19.05 times, respectively. The company has actively entered AI, launched a vertical urban energy industry model, built the Shensi Yunnao AI computing power platform, and joined the Huawei Kunpeng & Shengteng ecosystem. This year is the first year Jinan Energy Group has joined the company. In the digital Jinan Urban Comprehensive Perception and Warning Network Engineering Information Platform construction project that the company won the bid, the company mainly undertakes software business, has high gross margin, and will also polish Shinsi Yunnao related products and platforms in the project. The performance is expected to turn losses into profits and maintain the “buy” rating.
Risk warning
Product promotion falls short of expectations, technology development falls short of expectations, market competition is fierce, etc.