Yuncong Technology (688327)
In this period, a total of one company will make an inquiry. On May 13 (next Friday), the “cloud from technology” of the science and innovation board company will make an inquiry.
Yuncong Technology (688327): the company is an artificial intelligence enterprise providing efficient man-machine cooperative operating system and industry solutions. It has gradually realized mature application in the four fields of smart finance, smart governance, smart travel and smart business. From 2019 to 2021, the company achieved operating revenue of 807 million yuan / 755 million yuan / 1076 million yuan respectively, yoy was 66.77% / – 6.51% / 42.49%, and the annual compound growth rate of operating revenue in the three years was 30.48%; The net profit attributable to the parent company is – 640 million yuan / – 813 million yuan / – 632 million yuan, and yoy is – 254.01% / – 27.10% / 22.24% in turn. The company has not realized profit. According to the company’s preliminary forecast, the net profit attributable to the parent company in 2022q1 is expected to be about – 117 million to – 101 million yuan, with a year-on-year change of 46.39% to 53.72%.
Investment highlights: 1. The company is one of the leading enterprises in China’s artificial intelligence industry. Its self-developed core algorithms such as face recognition, cross-border tracking, speech recognition and natural language processing are highly competitive. The company performs well in the algorithm progressiveness index; In terms of face recognition, in the face recognition algorithm test of the National Institute of standards and technology in January 2021, one of the six data set tests of the 1:1 face recognition project ranked first, three ranked second, one ranked third, and the mask face recognition project ranked first; In terms of cross mirror tracking, in May 2020, Duke University and the Chinese University of Hong Kong brushed Shanghai New World Co.Ltd(600628) records in the dataset test, Tsinghua University brushed Shanghai New World Co.Ltd(600628) records in map index 2, and won the championship in the first national artificial intelligence competition in 2020; Speech recognition ranked first in the world in the test of librispeech and switchboard data sets in May 2020; In terms of natural language processing, it ranked first in the world in the race dataset test in July 2019 and second in the world in the squid dataset test. 2. The company’s products have been successfully applied in a large area in many subdivided fields such as smart governance, smart finance, smart travel and smart commerce, and the commercialization ability has been tested; With the accelerated promotion of China’s artificial intelligence industry, the company is expected to benefit significantly. The company’s products have been well promoted at the downstream application level, and are expected to achieve a good demonstration effect; In the field of smart finance, the company’s products cover financial institutions represented by more than 100 banks, including six major state-owned banks. In the field of smart governance, the company’s products serve many types of application scenarios such as politics and law, schools and scenic spots in 30 provincial administrative regions across the country. In the field of smart travel, the company’s products have been deployed and launched in hundreds of civil airports, including nine of China’s top ten airports. 3. The company is constantly looking for new application scenarios, and undertook orders for digital new infrastructure business totaling 851 million yuan in 2020. The opening of new markets has opened up new growth points for the company. The company has undertaken new government digital infrastructure projects since 2020. In 2020, the company obtained two new infrastructure orders in this application field and one new infrastructure order in 2021. In the future, with the smooth promotion of digital new infrastructure orders in hand and the formation of revenue, through experience accumulation and scheme improvement, the company will continue to expand the number and amount of orders for large and medium-sized digital new infrastructure projects in other cities and open up new growth space.
Comparison of Listed Companies in the same industry: the comparable companies in the same industry of Yuncong technology mainly include Shangtang technology, Kuangshi technology, Yitu technology, Geling Shentong, Yuntian lifeI, Arcsoft Corporation Limited(688088) , Hangzhou Arcvideo Technology Co.Ltd(688039) , etc; Among them, Shangtang technology, Kuangshi technology, Geling Shentong, Yitu technology, Yuntian lifeI and other companies that are more similar to the company’s business model have failed to achieve profits, even excluding the impact of changes in the fair value of preferred shares; Therefore, the industry may not be suitable for valuation and pricing through pe-ttm. Assuming that the valuation is based on PS, the PS of Shangtang Technology Hong Kong stock (based on the operating revenue in 2021) is 29.6x, the PS of Geling Shentong (2021) is 14.4x, and the average PS (2021) of comparable companies is 22x, which can be used as an industry pricing reference. In comparison, the scale of cloud technology revenue is in the upper middle of the industry. Although it is lower than Shangtang and Kuangshi technology, it is higher than Geling Shentong, Yitu technology, Yunfei lifeI, etc.
Risk tips: companies that have started the inquiry process may still be unable to be listed for special reasons, the company’s content is mainly based on the contents of the prospectus and other public materials, there is a risk that the selection of Listed Companies in the same industry is not accurate, there may be interpretation deviation in the selection of content data, and the risks of specific listed companies are displayed in the text, etc.
