The company published an annual report for '22 and a quarterly report for '23, with revenue of 1.38 billion yuan (-8.6%) for '22; net profit of 18.143 million yuan (-88.8%) for the mother; net profit of -7,542 million yuan after deducting non-net profit. Q23 Q1 revenue was 230 million yuan (+55.9%), net profit to the mother was -149.56 million yuan (+69.0%); after deducting non-net profit - 1972.0 million yuan (+62.0%).
The company's Q1 business recovery logic has been verified. Driven by ChatGPT and data factors, the outlook is promising, and the buying rating will be maintained.
Key points to support ratings
Q1 The business recovery trend is obvious. The company's sharp increase in Q1 revenue in '23 was mainly due to: (1) New orders for innovative businesses such as parking lot cloud hosting (SaaS), smart parking operation, and parking time increased 68% compared to the same period last year. (2) The traditional smart hardware business was affected by macroeconomic recovery and showed a restorative growth trend. The number of new orders signed increased 15% over the same period last year. The company's innovative business is developing rapidly, and the recovery trend of its traditional main business is obvious.
It has massive data accumulation and focuses on the dual main lines of ChatGPT and data elements. On April 18, the company reached a strategic cooperation with the Shenzhen branch of Huishang Bank. The two sides will carry out all-round cooperation in the fields of smart parking, smart parks, car owner finance, advertising and big data, and various financial services. Jieshun Technology has a large number of B-side customers and over 100 million C-end car owners, and has accumulated differentiated industry experience and massive data accumulation. On the one hand, the company's cooperation with Huishang Bank is expected to tap the value of parking data and monetize data value through advertising promotion, etc.; on the other hand, the data accumulated by the company can provide basic data input for large-scale model training, and has a first-mover advantage for building ChatGPT in the parking field.
A number of city-level parking projects have been inspected, and a digital operating model has been launched. In April '23, the company completed the formal inspection of several city-level parking projects in Jincheng, Shanxi, Yuncheng, Shanxi, and Baoji, Shaanxi, and is about to begin operation. In addition to this, the new “everyone has a seat” taxi waiting model in cooperation with Shenzhen Airport has also been officially launched. The company changed from a traditional parking solution provider to a digital parking operation service provider, and the business model was further optimized.
valuations
Net profit attributable to mother for 23-25 is estimated to be $2.2, 280, and $330 million, EPS is $0.35, 0.43, and $0.50, and the corresponding PE is 30X, 24X, and 21X, respectively. The company's business fully recovered in 23 years. Driven by ChatGPT and data factors, the prospects are promising, and the buying rating will be maintained.
The main risks faced by ratings
Customer growth falls short of expectations; cost control falls short of expectations.