标题：IflytekExploring education market and super-brain applications
发布日期：2016-03-23 13:05:25
内容： Comments: The Company is proactively carrying out its ¨pyramid〃 strategy inthe education business, i.e. providing a complete set of services(teaching, examination, review, learning, and management) tomulti-level clients (including schools, teachers, students, and parents).With advantages and accurate market positioning in the audioeducation market, the Company is also striving to develop educationcloud and online education businesses. In 2015, its Zhixue.com havesigned long-term service agreements with c.4,000 schools in nearly 100cities/districts/counties, with the number of users reaching 5mn.Meanwhile, the Company provided education informatization plans for15 provincial education platforms and 20+ cities/districts/counties. Weexpect the Companyˇs speech assessment, education products andother education services to maintain rapid growth in the future. Continued industrialization of super-brain and introduction ofhuman computer interaction products such as AIUI. With corefunctions such as long distance speech recognition, full-duplex, andmultiple interactions, AIUI provides software/hardware/cloud/serviceintegration solutions (including microphone array, SDK, customization,etc.) for developers. Since the introduction of the super-brain plan in2014, the Company has achieved progress in both technologydevelopment and industrialization. We expect it to adopt AIUI and othersuper-brain applications in smart hardware and other rapid-growingsegments to create an AI industry ecosystem and enhance itsheadroom for growth. Profit growth declined due to higher R&D and market developmentexpenses. With smooth developments in speech assessment,education, and Internet businesses and consolidation of market leaderstatus, the Company posted operating revenue growth of 40.87% YoYand net profit growth of 12.09% YoY. As the Company is developingnew businesses with long payback periods such as cognitiveintelligence and education, we expect the Companyˇs related expensesto remain high in the next two years. With technology and data accumulated for years in speechassessment and other perceptive intelligence technologies, aswell as continued effort in R&D of cognitive intelligence projects(such as super-brain), the Company turns its core AI technologyinto a platform to create an AI ecosystem. As customers graduallybecome familiar with voice applications, there will likely be more applications on the Company’s openplatform. Meanwhile, the Company is developing customer-facing applications in education and otherindustries to attract higher traffic. Given its technology strength and industrialization of its products, theCompany is doubtless a leading enterprise in China’s AI industry. Potential risks: Lower-than-expected penetration rate of new products; more intense competition inonline education business; slower-than-expected progress of the super-brain project. Reiterate BUY rating. Given the continued high R&D and marketing expenses in new businesses, wemaintain 2016-17E EPS estimates at Rmb0.40/0.56 and forecast 2018E EPS at Rmb0.66. As a leader inAI industry with accumulated technology and resources, the Company is developing businesses withlarge headroom for growth in the long run, such as super-brain and education. We reiterate a TP ofRmb36, implying 90x/65x/55x 2016/17/18E PE.
发布日期：2016-03-23 13:05:25
内容： Comments: The Company is proactively carrying out its ¨pyramid〃 strategy inthe education business, i.e. providing a complete set of services(teaching, examination, review, learning, and management) tomulti-level clients (including schools, teachers, students, and parents).With advantages and accurate market positioning in the audioeducation market, the Company is also striving to develop educationcloud and online education businesses. In 2015, its Zhixue.com havesigned long-term service agreements with c.4,000 schools in nearly 100cities/districts/counties, with the number of users reaching 5mn.Meanwhile, the Company provided education informatization plans for15 provincial education platforms and 20+ cities/districts/counties. Weexpect the Companyˇs speech assessment, education products andother education services to maintain rapid growth in the future. Continued industrialization of super-brain and introduction ofhuman computer interaction products such as AIUI. With corefunctions such as long distance speech recognition, full-duplex, andmultiple interactions, AIUI provides software/hardware/cloud/serviceintegration solutions (including microphone array, SDK, customization,etc.) for developers. Since the introduction of the super-brain plan in2014, the Company has achieved progress in both technologydevelopment and industrialization. We expect it to adopt AIUI and othersuper-brain applications in smart hardware and other rapid-growingsegments to create an AI industry ecosystem and enhance itsheadroom for growth. Profit growth declined due to higher R&D and market developmentexpenses. With smooth developments in speech assessment,education, and Internet businesses and consolidation of market leaderstatus, the Company posted operating revenue growth of 40.87% YoYand net profit growth of 12.09% YoY. As the Company is developingnew businesses with long payback periods such as cognitiveintelligence and education, we expect the Companyˇs related expensesto remain high in the next two years. With technology and data accumulated for years in speechassessment and other perceptive intelligence technologies, aswell as continued effort in R&D of cognitive intelligence projects(such as super-brain), the Company turns its core AI technologyinto a platform to create an AI ecosystem. As customers graduallybecome familiar with voice applications, there will likely be more applications on the Company’s openplatform. Meanwhile, the Company is developing customer-facing applications in education and otherindustries to attract higher traffic. Given its technology strength and industrialization of its products, theCompany is doubtless a leading enterprise in China’s AI industry. Potential risks: Lower-than-expected penetration rate of new products; more intense competition inonline education business; slower-than-expected progress of the super-brain project. Reiterate BUY rating. Given the continued high R&D and marketing expenses in new businesses, wemaintain 2016-17E EPS estimates at Rmb0.40/0.56 and forecast 2018E EPS at Rmb0.66. As a leader inAI industry with accumulated technology and resources, the Company is developing businesses withlarge headroom for growth in the long run, such as super-brain and education. We reiterate a TP ofRmb36, implying 90x/65x/55x 2016/17/18E PE.
