\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: We tracked the company’s bid winning of individualized education project in the first quarter and the online sales of learning machine intelligent hardware.
Content:
We believe that the core competitiveness of AI company lies in the first mover advantage in the vertical track;
We have set a priori and a posteriori indicators of the company’s performance. The market is pessimistic about the development prospect of the company’s performance dominated by projects. We believe that there is a poor expectation at both end g and end C: 1) there is a structural improvement in the amount of government procurement budget of the Education Bureau, and the bid winning amount of education orders showed a significant improvement in the first quarter; 2) From January to February, the sales volume of learning machines increased by 63% year-on-year, and we believe that the company will make greater marketing efforts in 618, double 11 and other e-commerce festivals, so as to drive the growth of annual performance.
To sum up, we believe that the company’s 2G business growth rate will be repaired in 2022, which will drive the growth of the company’s revenue, and the learning machine will become the first popular single product. Therefore, we are optimistic about the growth space of the company’s performance in 2022. We revise the business revenue from 2021 to 2023 to be RMB 17.005/25.144/36.938 billion, corresponding to eps0 70 / 0.94 / 1.21, give 65 times PE, target price 61.1 yuan, and maintain the “overweight” unchanged.
Risk tips: policy risks, market sentiment and risk preference risks, tight government funds, untimely winning and landing of g-end business, untimely collection of government funds, untimely sales of C-end, increase in R & D personnel and cost investment, reduction of government subsidies and other risks.
