[summary]
Iflytek Co.Ltd(002230) as a leading enterprise in the field of artificial intelligence, it is a leader in the fields of smart education and smart city, and has layout in the fields of smart medicine, smart car, smart finance and so on. As the digital economy rises to the national strategy, the prosperity of relevant industries is expected to improve rapidly, and Iflytek Co.Ltd(002230) as a leading enterprise is expected to continue to benefit.
On February 11, Iflytek Co.Ltd(002230) said in the research activity that due to the change of local government and the epidemic, the growth of tog related business in all regions did slow down to about 20%; The base business of end C and end B will still maintain a benign growth in 2022. The company to B and to C have formed a good layout, which can hedge the impact of to g to a certain extent, and the overall business can maintain a growth of more than 30%.
The broker’s comprehensive profit forecast for Iflytek Co.Ltd(002230) 2022 is about 2.43 billion, with a year-on-year increase of 34%. The two phases confirm that the broker’s forecast is not unreasonable. The current price corresponds to 47 times of PE, which is the lowest valuation level since 2012. From this point of view, Iflytek Co.Ltd(002230) valuation is in a depression.
main logic: digital economy head enterprise
Iflytek Co.Ltd(002230) as a leading enterprise in the field of artificial intelligence, it is a leader in the fields of smart education and smart city, and has a layout in the fields of smart medicine, smart car, smart finance and so on. As the digital economy rises to the national strategy, the prosperity of relevant industries is expected to improve rapidly, and Iflytek Co.Ltd(002230) as a leading enterprise is expected to continue to benefit.
core competitiveness
Voice technology, government enterprise relationship and data accumulation are the three core competitiveness of the company.
The company started from voice and formed a comprehensive industry university research system with independent intellectual property rights from theory to products. The technical strength of voice AI is the leader in China.
Relying on the resources of Anhui provincial government, the company’s solutions can be first promoted in Anhui Province. The resulting demonstration effect and accumulated successful cases make it possible for the products to blossom nationwide.
The key to AI landing lies in data. Due to the first mover advantage of “one step ahead”, the company has been able to continuously accumulate data in the main tracks, creating a solid moat. The best example is that the company has become the only large-scale successful regional solution supplier in the industry.
main business analysis
Iflytek Co.Ltd(002230) the main business is concentrated in software and information technology services. According to products, the revenue of each industry is shown in the figure:
The education industry is the company’s largest business, the second largest business is open platform and consumer business, the third largest business is smart city business, and the fourth largest business is operator business. In addition, the company has income in medical treatment, smart cars, smart finance and other aspects. Smart education / smart city / open platform is the main growth point of the company in recent two years.
In the survey, the University of science and technology proposed the goal of 100 billion revenue at the end of the 14th five year plan: 30 billion in education, 20 billion in medical treatment, 20 billion in open platform + C-end hardware, and 10 billion in automobile, operator and smart city. Although Iflytek Co.Ltd(002230) gives the fascinating grand goal of the 14th five year plan, it can still be seen that the most promising business of Iflytek Co.Ltd(002230) is wisdom education, with a revenue target of 30 billion leading other businesses.
1. Wisdom education
According to the research information, iFLYTEK’s individualized teaching solution added more than 20 orders at the prefecture, city and county levels in 2021. With more and more application cases in various places, through application demonstration and verification, the next step will be to form a benchmark for replication and promotion of the project. Facts also show that for some questions about the sustainability of investment layout projects, iFLYTEK has actually been further copied and popularized through demonstration and verification after the investment layout projects have formed a benchmark. For example, Wuhu County and high tech Zone in Anhui invested 150-200 million respectively last year, and based on demonstration and verification, they won 489 million in January this year. Wuhu has a population of two or three million and Bengbu has a population of more than three million. It is estimated that a Wuhu City can reach more than a billion.
The “double reduction” policy allows students to have time for autonomous learning, and the application of iFLYTEK AI learning machine is growing rapidly. Based on good application results, iFLYTEK AI learning machine is widely welcomed by students, parents and schools. In terms of specific data, in 2021, the weekly use time of iFLYTEK AI learning machine users increased by nearly 70% year-on-year, the number of answers increased by 53% year-on-year, and the number of learning machine sales continued to grow rapidly.
At the Iflytek Co.Ltd(002230) cloud annual meeting on January 29, 2022, chairman Liu Qingfeng summarized the business of “teaching students according to their aptitude” in 2021 and looked forward to the growth rate in 2022. Liu Qingfeng mentioned that the business growth rate of “teaching students according to their aptitude” in 2021 was 48%, and looked forward to the business growth of teaching students according to their aptitude in 2022., The leadership of the University of science and technology said that the sales target of learning machines will increase by more than 200% in 2022.
2. Smart city
According to the survey information, iFLYTEK has a solid foundation and layout in terms of digital technology and application, and has many successful cases.
7 * 24-hour digital government has received important instructions from the leaders of the State Council;
Iflytek Co.Ltd(002230) led the construction of “digital Hangzhou” and made overall planning and implementation from five aspects: infrastructure, government services, people’s livelihood services, social governance and industrial economy, so as to improve the level of urban governance;
Tongling urban super brain was selected into the Research Report on global standards of urban brain launched by the global standards research group of urban brain (wwns-r), becoming the only six selected classic construction cases in the world.
According to the research information, the top three big orders of smart city with more than 100 million yuan are iFLYTEK, Huawei and Tencent. The total amount of projects with more than 100 million yuan, Iflytek Co.Ltd(002230) ranks first, with a total scale of 1.745 billion yuan.
3. IFLYTEK open platform
IFLYTEK artificial intelligence open platform and industrial demonstration project won the “China Industry Award”. The China industry award is the highest award in China’s industrial field approved by the State Council and is known as the “Oscar” of China’s industry.
As the first batch of national new generation AI open innovation platforms, iFLYTEK AI open platform takes the service developer group as the core, provides the developer team with full link services from birth to growth through technology empowerment, market empowerment and investment empowerment, and continues to build the AI industry ecology.
IFLYTEK intelligent industrial platform focuses on the two vertical fields of intelligent energy and intelligent manufacturing, and has achieved a number of breakthroughs from 0 to 1. “IFLYTEK · shunfenger” Tuling industrial cloud platform “was selected as the” characteristic professional industrial Internet platform “of the Ministry of industry and information technology; “IFLYTEK industrial auscultation system” won the “2020 China energy enterprise information product technology innovation award”.
4. Other businesses
The automobile business has a good growth momentum in 2021, and voice interaction and multimodal perception have increasingly become rigid needs.
The demand for intelligent vehicles is growing. At present, the automobile industry is changing from oil vehicles to new energy vehicles, and the trend is particularly obvious. The requirements of the original oil vehicles for intelligence are often different from those of new energy vehicles.
New energy vehicles are now basically voice interaction, multimodal interaction and even intelligent sound of Iflytek Co.Ltd(002230) , which will slowly become standard and just needed on more and more models.
IFLYTEK front loading and cooperative models are growing rapidly. In 2021, iFLYTEK installed 7 million vehicles in front, reached cooperation with more than 40 vehicle enterprises and reserved more than 1100 models. Automobile is a cycle product. There is often an 18 month cycle from product R & D to launch. Iflytek Co.Ltd(002230) a lot of reserves have been made in 2021. With the further increase of the proportion of new energy vehicles in 2022, the company’s front loaded vehicles are expected to further increase to 9 million and more than 260 cooperative models. From the current situation, it is expected to achieve 70% revenue growth in 2022.
Cooperation continues to deepen and open up room for improvement. From providing a voice module to automobile manufacturers, to later providing intelligent interactive components, the company has further improved to the control of automobile intelligent sound. With more and more cooperation with automobile manufacturers, Iflytek Co.Ltd(002230) in the automobile field, the Arup value of each vehicle will continue to increase; With the increasing content and services provided, the customer unit price will continue to have a large room for rise in the future. The specific situation will be gradually seen after the products cooperated by the company and automobile manufacturers are gradually listed.
