Events: ① On the evening of May 19, it was announced that the company had recently received the Reply on Approving the Registration of Shares Issued by Tales Information Technology Co., Ltd. to Specific Objects issued by the China Securities Regulatory Commission, which approved the company's application for registration of shares issued to specific objects. The number of shares issued this time does not exceed 239 million, and it is planned to be listed on the Shenzhen Stock Exchange GEM. ② On May 17, the company signed a comprehensive cooperation agreement with Huawei, which will give full play to its advantages in their respective fields, actively promote cooperation in the transformation of digital intelligence, steadily promote the development of industrial digitalization and digital industrialization, create competitive products, and achieve complementary advantages, mutual benefit and common development.
The raised funds are used for AI project research and development, and the long-term value of the company is expected to be realized. The total amount of funds raised from this issuance to specific objects does not exceed 1.845 billion yuan, and the net amount of funds raised after deducting the issuance costs will be used for Tuotan's industrial model research and development and AIGC application industrialization projects. After this issuance to specific objects, it will help to improve the company's capital strength and asset scale. The investment projects with raised funds have good market prospects, which will help to increase the company's business income and improve long-term profitability, and further enhance the company's core competitiveness.
We signed a comprehensive cooperation agreement with Huawei to complement each other's strengths and help achieve win-win results. The company and Huawei, in combination with their respective technical characteristics, create a stack independent and controllable joint solution of software and hardware integration in public security, media, government, finance, public opinion and other industries, promote the industrial implementation of software and hardware integration solutions based on the compatibility and adaptation of Huawei Ascension and Tuotan model, actively create differentiated competitive advantages in the industry, and jointly promote them to the outside world, Mutual benefit and win-win situation. ① In terms of the big model, the company based on its own high-quality data, fine tuned the Huawei Pangu big model as the basic model, and trained the Pangu Tuotian big model; ② In terms of cloud services, the company uses Huawei cloud resources and technologies to incubate new SaaS products and enrich the product ecosystem; ③ In terms of market operation and sea going, the company is expected to use Huawei's global distribution capability, resources of global operation manpower layout, global cloud service infrastructure service system and extensive sea going customer resources to jointly promote products and solutions and promote the better development of business in overseas markets. We believe that the "strong alliance" between Huawei and the company is expected to promote the company's product research and development process, improve product capabilities and technical barriers, enrich the company's product matrix and enhance market competitiveness, so as to seize market shares at home and abroad and boost the company's performance.
ToG business has sufficient orders in hand, its technology and product capabilities have been recognized by the market, and its performance is guaranteed within the year. On May 20, the company said that it had won the bid for the public opinion information system project of a city. The project uses advanced artificial intelligence technology and big data processing technology to gather public opinion risk data, build business application systems, provide public opinion monitoring and discovery, collaborative linkage disposal, evaluation statistical analysis and other system service capabilities, achieve multi terminal display and early warning, and assist in decision-making and command work. This is the company's ability to build a new pattern of overall intelligent governance of local businesses based on its own controllable products, big data and AIGC big model, starting from the actual work, with the development of digital enabling business. Once the implementation effect is verified, it is expected to sign more government public opinion information system project orders to further improve profitability.
Investment suggestion: As the leader of semantic intelligence in China, the company continues to focus on the large-scale model scenario application and industry landing by means of regular increase of capital raising and comprehensive cooperation with Huawei. In the future, with the deep integration of AI and industry and the expectation of business going to sea, the company is expected to take advantage of the growth dividend of AI industry and set sail to build a new growth curve. It is estimated that the net profit attributable to the parent company in 2024-2026 will be 236/345/424 million yuan respectively, and the EPS will be 0.30/0.43/0.53 yuan respectively, corresponding to the current PE of 49/33/27 times, maintaining the "buy" rating.
Risk tips: policy change risk, technology development less than expected, macro environment change risk, overseas business promotion less than expected, and new projects less than expected.
