occurrences

The company released its 2024 semi-annual report. In the first half of 2024, it achieved operating income of 2.978 billion yuan, an increase of 18.4% year on year; net profit to mother - 0.192 billion yuan, down 152.7% year on year. Net profit after deducting non-return to mother was 0.004 billion yuan, an increase of 108.11% year on year.

In Q2 alone, 2024Q2 achieved operating income of 1.885 billion yuan, an increase of 32.07% year on year; net profit to mother was 0.009 billion yuan, up 99.07% year on year, after deducting net profit of 0.037 billion yuan.

reviews

Rail order delivery accelerated, Q2 performance exceeded expectations

On the one hand, the company's rail transit order delivery accelerated, leading to rapid growth in Q2 revenue. According to the company's semi-annual report, the company continued to deliver intelligent system orders for multiple new construction lines in Guangzhou, and continued to promote the intelligent transformation of Chengdu line 17, 18, and 19 extension lines and the upgrading of connectivity technology. On the other hand, the rail transit industry continued to be prosperous, and the winning bid amount for the company's rail transit projects increased significantly compared to the same period last year. There are several new smart subway lines in the Guangdong-Hong Kong Bay Area and Shenzhen Intercity Railway Project Piaosheng Dacheng The construction project between Shenzhen Airport and Pingshan has opened up a new market for intercity railway construction in the Bay Area.

The Jiadu Zhixing Transportation Model passed the National Internet Information Office's Big Model Registration. Since the first major transportation industry model was launched in June last year, the Jiadu Zhixing Transportation Model has continuously accumulated industry knowledge. Through practical application optimization models, the Big Model has continuously improved the natural language processing, image recognition, speech recognition, enhanced learning, and logical reasoning capabilities of the big model. The company participated in the development and construction of the Ministry of Industry and Information Technology's “Industrial Public Service Platform for Artificial Intelligence Big Model Engineering Technology and Application”, and passed the National Internet Information Office Big Model Filing in February of this year. The company released the Jiadu Zhixing Transportation Model V2.0 in June of this year. This version covers different parameter scales of 1 billion to 100 billion, and deeply empowers various business scenarios such as intelligent urban rail customer service, intelligent operation and maintenance, emergency management, safe operation, passenger service, passenger flow prediction, energy saving and environmental control. At present, the company's big model has been commercialized: a car driving management e-book product based on the cooperation between Jiadu Zhixing and the Guangzhou Traffic Police Detachment has been officially launched, with an accuracy rate of more than 95% in the intelligent question and answer of the car driving management business model; the company is also incubating large model products covering the two core traffic management businesses of command and law enforcement. These three types of business scenario products have all received positive feedback from the Guangzhou Traffic Police Detachment and will continue to be updated and iterated.

Deeply involved in smart transportation, the “independent development+collaborative innovation” multi-party layout company invests in YunchuangHuitu (Guangzhou) Technology Co., Ltd. in the smart city transportation field to further expand urban traffic roadside equipment products. Among them, the urban traffic signal products launched by Yunchuang Huitu can form a good synergy effect with the company's traffic brain series products, traffic cloud platforms and other roadside equipment, further enhancing the company's smart city vehicle cloud integration development capabilities.

In the field of smart rail transit, the company uses centralized bidding to increase its stake in Traffic Control Technology (stock code: 688015), a leading enterprise in the smart city rail transit industry. In the future, it is expected to strengthen the joint development of Jiadu Technology's rail traffic signal system construction and business, further consolidating the competitive advantage and depth of the moat in the company's smart transportation main circuit business.

Profit forecasting and valuation

Considering the company's accelerated order delivery pace and good performance in the first half of the year, we maintain our previous profit forecast. We expect the company's revenue for 2024-2026 to be 7.07, 7.638, 8.036 billion yuan, and net profit to mother 0.122, 0.206, and 0.285 billion yuan. Among them, although net profit to mother in 2024 declined sharply compared to 2023, the main reason is that the company's net profit to the mother in 2023 included fair value changes due to changes in the stock prices of a large number of subsidiaries, if fair is excluded Due to the impact of profit and loss from value changes, net profit attributable to mother improved significantly in 2024 compared to 2023 (net profit without return to mother was -0.034 billion yuan in 2023), maintaining a “buy” rating.

Risk warning

The company's new technology and product development fell short of expectations; project delivery fell short of expectations due to other force majeure disturbances; industry competition intensified