Iflytek Co.Ltd(002230) (002230)
The policy overweight is conducive to the intellectualization of education, and the leader of intelligent education continues to benefit. In May 2021, the 19th meeting of the central comprehensive Deepening Reform Commission stressed that “we should reduce the homework burden and after-school training burden of students in the stage of compulsory education” to provide a good policy environment for the large-scale implementation of smart education business. In July 2021, the Ministry of education and other six departments jointly issued the guiding opinions on promoting the construction of new education infrastructure and building a high-quality education support system, which proposed that “by 2025, a new education infrastructure system with optimized structure, intensive efficiency, safety and reliability will be basically formed”, so as to enhance the demand for iterative upgrading, updating and improvement of smart education. The vigorous promotion of the policy has led to the continuation of orders. From December 30, 2021 to January 5, 2022, four orders exceeding tens of millions have been successively placed, including the overall reconstruction of the smart school of RMB 350 million + in Xuancheng City. It fully reflects that Iflytek Co.Ltd(002230) as the leader of smart education, under the macro background of strengthening the supervision of after-school training and highlighting the in-school education, it forms differentiated competitiveness through its data accumulation advantages and advanced solutions, and continues to benefit from the wave of educational intelligence.
Thousands of people and thousands of faces, the “eternal virtual human” in the meta universe. The virtual anchor can be tailored according to the brand tone and is expected to become a digital asset for the long-term precipitation of enterprise brand value. The virtual human interacts with consumers continuously for 7×24 hours. While increasing the transformation opportunities and the accumulation of digital human assets, it also relies on its own strong computing power to provide personalized services for the diversified needs of consumers, so as to truly achieve thousands of people and thousands of faces. On October 20, 2021, the website of the State Administration of radio, television and network audio-visual released the “14th five year plan” for scientific and technological development, which proposed to “accelerate the technological upgrading of the production and broadcasting system and promote the wide application of virtual anchor and animation sign language in the production of news broadcasting, weather forecast, variety science and education and other programs”. The virtual anchor will gradually replace the existing anchor pattern. Iflytek Co.Ltd(002230) at the developer conference on October 24, 2021, it was quickly put forward for the plan. At present, the company’s 3D data human micro expression has made phased progress, and the number of virtual people has increased to 54. The company takes the lead in launching the virtual human interaction platform in the industry, uses emotion to run through the background logic from text semantics to mood to facial expression, creates a real assistant in the virtual world, and is expected to become the first batch of qualified and licensed virtual human partners of SARFT. With the perfect layout of AI, AR, VR, 5g and other technologies, combined with policy promotion and market demand, the company has formed a dual drive of “technology + market”.
Shangtang listing highlights the valuation advantages. Unlike the recently listed Shangtang technology, which focuses on the subdivided field of computer vision, Iflytek Co.Ltd(002230) has achieved full coverage of the AI industry chain and maintained an international leader in AI core technology fields such as intelligent voice, computer vision and cognitive intelligence. In particular, the voice technology has deep strength, and the Chinese voice industry chain with iFLYTEK as the core has begun to take shape. Meanwhile, as one of the earliest investors of Shangtang technology, Iflytek Co.Ltd(002230) is deeply bound with Shangtang technology’s in-depth learning field, and has formed a perfect algorithm chain. Comparing the market value of the two, we can see that the current market value of Iflytek Co.Ltd(002230) is 124.4 billion yuan, the 20-year revenue is 13.025 billion yuan, and the PS is 9.55x; Shangtang technology has a market value of RMB 232 billion, a 20-year revenue of RMB 3.451 billion and a PS of 67.23x. Iflytek Co.Ltd(002230) as a leading artificial intelligence enterprise in China, a number of core technologies can support scene expansion and highlight valuation advantages.
Investment suggestion: as a leading AI enterprise in China, the company has achieved full coverage of the AI industry chain, and intelligent education has taken the lead in benefiting from AI 2.0 and continues to obtain large orders. At the same time, through the scenario application of its core technology, it took the lead in launching the virtual human interaction platform in the industry. Compared with Shangtang technology, which was recently listed, the company’s valuation advantage is prominent. It is estimated that the EPS from 2021 to 2023 will be 0.89 yuan, 1.17 yuan and 1.34 yuan respectively. The current market value corresponds to 44 / 38 times of PE in 22 / 23 years, maintaining the “recommended” rating.
Risk warning: the promotion of new business is less than the expected risk; User growth is less than expected risk
