--The world’s first UAV dispatch center began operations, and promoting the advancement of intelligent logistics systems. On June 6th, Jingdong Smart Logistics announced their national operation and dispatch center in Suqian was officially completed and operating. Jingdong logistics is the world’s only logistics platform servicing small, medium-sized, large, cold chains, B2B, cross-border, and crowdsourcing network companies. Currently, a number of UAVs have been put into use, Jingdong plans to collaborate with Shaanxi, Jiangsu, and other provinces to gradually build a worldwide UAV intelligent logistics network. UAVs are preferably operated in remote areas with complex terrain, or across various bodies of water while decreasing costs and time for complex terrain transport. UAV distribution systems, based on artificial intelligence (AI) dispatch/control centers are an important part of the intelligent logistics system. The flight control/dispatch centers input the coordinates of each UAV, calculate flight parameters, route, status, include comprehensive management, and displays real-time monitoring of each unit. We believe the use of UAVs will increase distribution efficiency and promote the advancement of intelligent logistics systems.
--The global logistics network has taken a comprehensive turn towards automation, process, and data. In May of 2017, Rookie Network Technology Co. released the “ACE” program and will invest $1MM in intelligent logistics vehicles to enhance the application of AI in its network. Intelligent logistics vehicles, SAIC Motor Corp., Dongfeng Automobile Co., and other partners have utilized Rookie Network’s advanced large data and algorithms to optimize express transit lines. Also, in 2013 Amazon launched its Prime Air UAV distribution plan and has continued to invest in research and development. Currently, they’re planning to create a 30-minute UAV delivery service in Paris, in addition to building UAV parachutes and other new patents. Although UAVs have a low endurance capacity, lack of security control, and different air control policies, the distribution efficiency and reduction of the cost will lead to a gradual expansion of downstream market size.
“Artificial intelligence and logistics” are entering a rapid development phase. The logistics industry is high-density and data focused, utilizing each link in the production of large data for AI. AI technology in regard to logistics, is mainly focused on: intelligence search, reasoning planning, pattern recognition, computer vision, intelligent robotics, and other fields. In the storage and inventory management divisions, AI improves the accuracy of location and optimizes inventory in the sorting section. In computer vision technology, intelligent robotics are used for automatic identification. Finally, in the distribution process, AI analyzes the data, streamlines the distribution system, and uses unmanned distribution equipment. We believe that the future of UAVs will be to gradually become the global logistics industry standard, and with machine vision technology and unmanned control technology maturing, AI will be the logistics industry’s “secret weapon” to increasing efficiency and cutting costs.
Investment Advice & Investment Objectives
--The system, hardware, and software solutions provider for UAVs is Thunder Software Technology (300496, unrated); the logistics industry solutions provider today is New Trend International Logis-Tech Co. (300532, unrated); Shenzhen Urovo Technology Co. (300531, unrated)
--The intelligent logistics industry has developed slower than expected, and the development of AI technology within the logistics industry has also been less than expected.
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Relatively stronger than the market benchmark index, yields more than 15% Hold: Relatively stronger than the market benchmark index, yields 5%-15% Neutral: Fluctuates between -5% to 5% relative to market benchmark index yields Sell: Weaker than the market benchmark index, yields less than -5%
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Quantitative Analysis of the Industry’s Investment Rating
Relatively stronger than the market benchmark index, yields more than 5% Neutral: Fluctuates between -5% to 5% relative to market benchmark index yields Bearish: Relative to the market benchmark index rate of return below 5%.
The industry was not covered by the Company’s research at the time of the report, therefore the analyst did not provide an investment rating based on current research of the stock.
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