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HKUST News (002230) March 2019 Report Preview Comment: Performance Exceeds Expectations, Per Capita Efficiency Continuously Improve
Matters: The company issued a 2019Q3 notice to achieve net profit3.300 million -3.800 million, an increase of 50 in ten years.61% -73.43%; of which Q3 achieved a net profit of 1 quarter.4.1 billion-1.910,000 yuan, an increase of 58 in ten years.81% -115.31%.  Comment: Performance exceeded expectations and per capita efficiency continued to improve.The company’s net profit for the first three quarters of 2019 is expected to grow by 50 per year.61% -73.43%, exceeding expectations.Among them, Q3’s single quarter net profit is expected to grow by 58 each year.81% -115.31%, continuing the rapid growth trend of the previous two quarters.The rapid growth of performance is mainly due to the company’s focus on key tracks, and its core business has shown a healthy development momentum.At the same time, under the development strategy of giving priority to benefits, the company’s per capita efficiency continued to improve. Being included in the list of entities has limited impact on the company’s daily operations.It is reported that the official website of the US Department of Commerce announced on October 8 that Chinese technology companies such as HKUST and Xunfei were included in the entity list by the US government.Headquarters, the company has the world’s leading artificial intelligence core technology, all of these core technologies come from the company’s independent research and development, with independent intellectual property rights.At the same time, the company’s main customers are domestic, and the amount of overseas sales revenue accounts for less than 1% of the total sales revenue.Moreover, the company’s litigation situation has a plan, and the inclusion of the entity list will not have a significant impact on the company’s daily operations. Technology and industrial applications achieve positive interactions, and AI application dividends are accelerated to cash.In the field of education, the company’s smart education products currently cover 31 provincial administrative units2.More than 50,000 primary and secondary schools, serving nearly 100 million teachers and students.In the judicial field, Shanghai ‘s 206 artificial 武汉夜网论坛 intelligence criminal case auxiliary trial system has been launched in 2017, and has now started trials of four criminal cases, including homicide, theft, illegal fundraising, and telecommunications fraud, covering 102 common crimes.Moreover, the public inspection system in Shanghai has been used regularly.In the consumer field, the company first released a number of subversive traditional intelligent hardware such as Xunfei transcriber, Xunfei recording pen, Xunfei office notebook and so on.At 6.During the 18 E-commerce Festival, the company’s full range of products was placed in one fell swoop and won six firsts in five categories. Investment suggestion: We consider 2019 to be an important point in the turning point of the company’s profit performance, and maintain the forecast that the company’s net profit attributable to its mother in 19-21 will be 9.2.3 billion, 14.7.1 billion, 21.6.1 billion, corresponding to PE, 77 times, 48 times, 33 times, maintaining a target price of 42.34 yuan, maintaining the “strong push” level. Risk reminder: The artificial intelligence industrialization has fallen short of expectations; market competition has intensified.