HKUST Xunfei (002230) Company Research: Steady growth in business performance, smart education and other business lines help frontline epidemic

HKUST Xunfei (002230) Company Research: Steady growth in business performance, smart education and other business lines help frontline epidemic
Event: HKUST Xunfei announces 2019 performance forecast: In 2019,深圳spa会所 the company will realize net profit return to mother.3 eight percent.900 million, an annual increase of 35% -65%. Performance has grown steadily, with a median forecast of 50% for the full year.In 2019, the company’s revenue is expected to exceed 10 billion U.S. dollars, and the scale of revenue has entered a new transformation; the net profit attributable to mothers will be 7.3 ppm-8.USD 900 million, an annual increase of 35% -65%; the estimated net operating cash flow is USD 1.5 billion.In 2019, based on the world’s leading artificial intelligence technology, the company continued to advance the “platform + track” strategy, and the results continued to appear. The winning of two large orders for smart education marked a significant change in the procurement model of education business.In December 2019, they won the US $ 1.6 billion project of Bengbu Smart School and the 800 million project of Qingdao Artificial Intelligence + Education, totaling 2.4 billion education orders, accounting for 30% of the 18-year revenue and 1 of the 18-year education business revenue.2 times, the large order represents a gradual demonstration application of the company’s education business.At the same time, important marginal changes have taken place in the procurement target. In the previous smart campus, smart classroom and personalized learning procurement, schools were used as the purchasing unit, the order amount was small, the approval process was long, and standardized implementation was poor.The two successful bidders launched this time were the Bengbu Education Bureau, the Huangdao District Education and Sports Bureau, and the Education Bureau ‘s project order scale as a unit. The higher the standardization of the school, it also means that the channel for education business has occurred.A noticeable change. Medical, education, government and other business lines are dispatched to support frontline epidemic prevention and control.Recently, the HKUST Xunfei Open Letter announced that in the fields of medical treatment, education, justice, government services, and operators, the use of independently controllable technologies and products to help prevent and control the epidemic, and form three-dimensional assistance.In the medical field, HKUST’s Feizhi Medical Assistant has analyzed 2.42 million primary medical records; in the education field, HKUST’s Feifei provides intelligent air classroom services to Hubei and other regions; in the government affairs field, the 19 million registered terminal government affairs app”On-line” new pneumonia prevention and control topics “; in the field of politics and law, artificial intelligence is used to assist police departments and help the government to effectively manage personnel involved in affected areas. HKUST’s net profit attributable to the parent company for 2019-2021 is estimated to be 8, respectively.4 billion, 14.0 billion, 21.90,000 yuan, maintain “Buy” rating. Risk warning: market competition is intensified; technology research and development is lagging behind and investment is not up to expectations; brain drain; increased accounts receivable and customer returns are not up to expectations; expenses may increase further.