Key investment points

The company is the “double chain leader” of Guangzhou's artificial intelligence and rail transit industry chain and “AI+ Big Transportation” is the main direction the company is betting on and deepening in recent years. On June 29, 2023, the company first released the first major model in the transportation field, the Jiadu Zhixing traffic model. In 2024, the Jiadu Zhixing traffic model was iterated to version 2.0. At present, product matrices such as PCITransgpt, the large visual model Trancore-V, the large multi-modal model Trancore-M, and the large spatio-temporal decision model Trancore-TS have been formed.

The company has nearly 20 years of R&D, implementation and delivery experience in the rail transit field. It is one of the few domestic suppliers that also has multiple professional IT systems and rail transit big data system products. It has accumulated deep industry knowledge, can deeply understand customer business pain points, and forwardly explore potential applications of AI big model technology and industry needs.

The company's AI model has been commercialized in multiple scenarios. In 2023, traffic AI orders increased 20% year-on-year in the rail transit field. The company's Zhixing traffic model has been implemented in urban subway projects such as Jinan, Nanchang, and Changsha, deeply empowering various business scenarios such as intelligent urban rail customer service, intelligent operation, passenger flow prediction, energy saving and environmental control, etc., to help urban rail digital intelligence achieve faster technology iteration and more efficient application implementation. The digital human customer service “Xiaojia” launched by the company in the rail transit scenario can assist passengers to independently complete biometric registration and quickly and accurately answer various questions such as route inquiries, site inquiries, and ticket processing.

In the field of urban transportation, the company has commercialized both B-side and C-side scenarios. Facing the C-side, the “Guangzhou Traffic Police” public account has now been connected to the Zhi Xing Traffic Model. The e-book intelligent customer service system is based on the big traffic AI model. The e-book recall rate of knowledge in the library has reached 100%, the response accuracy rate has reached 95%, and the blocking rate of sensitive words has exceeded 99.9%. Facing the B-side, the company is also incubating large-scale model products covering the two core traffic management businesses of command and law enforcement.

Participated in the country's first city-level industrial artificial intelligence center

On November 21, 2024, the Huadu District Government released a new industrial digital service platform for Huadu District and unveiled the country's first city-level industrial artificial intelligence center. The industrialized digital service platform was jointly built by the Huadu District Government, Jiadu Technology, Huawei, Zhiyun Technology, and the Chinese Academy of Information and Communications Technology to jointly build the platform, covering small and medium-sized enterprises throughout the region, with industrial Internet and industrial AI applications as the core, and based on a unified data bus and unified account system, etc., to build enterprise-oriented portals and system cloud workbenches to help small and medium-sized enterprises accelerate digital transformation.

Profit forecasting and valuation

We maintain our previous profit forecast. We expect the company's revenue for 2024-2026 to be 7.1, 8.23, and 10.116 billion yuan, respectively, and net profit to mother of 0.063, 0.208, and 0.504 billion yuan, respectively. Maintain a “buy” rating.

Risk warning

The company's AI big model development falls short of expectations, the commercialization of the company's AI products falls short of expectations, and industry competition intensifies