Qianfang Technology (002373): Performance in line with expectations and continue to advance the one body and two wings strategy

Qianfang Technology (002373): Performance in line with expectations and continue to advance the “one body and two wings” strategy

The company released its 2018 annual report and achieved operating income of 72.

51 ppm, an increase of 35 in ten years.

35%; net profit attributable to mother 7.

62 ppm, an increase of 63 in ten years.

80%.

The performance was in line with expectations, and M & A’s security business achieved good strategic synergy.

In 2018, security achieved operating income of 36.

9.6 billion, an increase of 53 in ten years.

90%, well coordinated with Yushi’s strategy.

The company holds 3 of Yushi Technology through the company itself.

28% equity, held Yushi Technology 92 through Jiaozhi Technology.

04% equity, holding a total of 95 Yushi Technology.

32% equity.

Yushi Technology completed the consolidation at the end of March 2018, and the company held Yushi Technology 38 before the consolidation.

00% equity.

Jiaozhi Technology achieved net profit after deduction in 20184.

USD 3.9 billion, and gradually realized a profit exceeding the performance commitment of 0.

8.3 billion, business continued to grow healthily.

The number of Yushi Technology increased from 2,300 to more than 3,640 during the reorganization.

The development of smart transportation business is good.

In 2018, the company’s smart transportation business realized 厦门夜网 revenue34.

93 ppm, an increase of 19 years.

40%.

The gross profit margin is 31.

17%, an increase of 0 compared to the same period last year.

34 units.

The company has steadily advanced in a number of subdivisions such as intelligent high-speed informationization, rail transit PIS systems, and transportation big data analysis applications, and continues to maintain its leading position in the industry. The transportation application scenarios around high-speed, airport, rail transit, and traffic big data continueLanding.

V2X and smart car business continued to advance.

The company keeps up with the development trend of intelligent connected cars, and a variety of layouts have also achieved staged results: launched V2X series products, which can provide safe and efficient full series of products and service support for the vehicle-road collaboration and intelligent connected car industry;Successfully passed the world’s first “three-span” interconnection and interoperability test; launched a V2X vehicle-road collaboration solution in cooperation with Baidu Apollo; the Intelligent Vehicle Alliance Industry Innovation Center completed an automated driving road test mileage of over 120,000 kilometers; the Beijing Automotive Internet Industry Fund was successfully established,Layout investment Hongquan IoT, a joint-stock company based on the new generation of mobile Internet, applied for science and technology board.

The company indirectly held 14,952,369 shares of Hongquan Wulian, accounting for 19 of its total share capital before the initial public offering.

94%.

Hongquan IOT is an international leader in intelligent connected equipment for commercial vehicles. Its main products include advanced assisted driving systems representing intelligent technology paths and intelligent enhanced driving systems representing connected technology paths, human-computer interaction terminals, and vehicle networking terminals.
The company’s profit mainly comes from the sales of intelligent enhanced driving systems and advanced driver assistance systems.

Investment suggestion: The company enters the security industry by acquiring Yushi Technology, a leading global video surveillance manufacturer.

The two wings of smart transportation and smart security business fly together, driving the company to a higher level.

We are optimistic about the company’s future development prospects in the field of security and transportation.

It is expected that the EPS for 2019-2020 will be 0.

66, 0.82 yuan, maintain Buy-A rating, 6-month target price of 26 yuan.

Risk warning: the acquisition company cannot complete performance gambling; industry competition is intensifying.