The performance growth is stable, and the gross profit margin continues to rise. In the first quarter of 2022, the company achieved operating income of 160 million, an increase of 23.5% over the same period last year; net profit of 17 million, down 14.3% from the same period last year; and 16 million of non-return net profit, an increase of 0.3% over the same period last year. The profit growth rate was lower than the income growth rate, mainly due to the decline in investment income. The company's gross profit margin is 64.9%, year-on-year growth of 4.0pct, sales expense rate of 14.0%, year-on-year growth of 0.7pct, management expense rate of 15.4%, year-on-year decline of 0.7pct, R & D expense rate of 24.2%, year-on-year growth of 0.8pct, high gross profit margin of public services and risk control services.

Digital economy has become a new engine, and big data's industry is becoming more and more mature. According to the White Paper on the Development of China's Digital economy (2021) by the China Academy of Information and Communications, China's digital economy reached 39.2 trillion in 2020, an increase of 9.7 percent in nominal terms over the same period last year, effectively supporting economic and social development.

At the same time, the 14th five-year Plan proposes to increase the added value of the core industries of China's data economy to 10% of GDP from 7.8% in 2020. Big data organically combines with various industry business scenarios, especially in data application, data governance and other areas to show great potential to drive innovation and change in related industries. With the growing demand for digital upgrading in various fields, customer demand is becoming more diversified and complicated. Big data, which has profound technology accumulation, leading data governance capabilities and rich industry experience like the company, will usher in a broader space for development.

[investment advice]

The company is a leading data intelligent service provider in China, successfully weathering the impact of declining growth demand in the Internet industry and the adjustment of the company's business structure, revenue and profits return to the growth channel. Data collection, transaction and processing are important components of the digital economy, and related enterprises are expected to benefit. We estimate that the company's operating income from 2022 to 2024 will be 770 million, 9690.77 million, net profit 1.37 million, 252 million, corresponding to EPS 0.34, 0.48, 0.63 yuan, PE, respectively, times 31-22-17, holding an "overweight" rating.

[risk Tip]

Macroeconomic downside risk

Policy risk.