The company released a performance forecast for 2022: the company expects to achieve net profit of 0.16-019 million yuan, a year-on-year decrease of 78.6%-82.0%; it is expected to achieve net profit of 0.07-0.1 billion yuan after deduction of the mother, a year-on-year decline of 87.8%-91.4%.

Key points of investment

Expanding innovative businesses, AI+ financial justice is beginning to emerge

In 2022, due to repeated epidemics, delays in some orders, delays in the implementation of ongoing contract projects, delays in project delivery and acceptance, etc., the company's revenue fell more than 20% year-on-year, and at the same time, the profit side declined. Overall, in 2022, the company insisted on independent innovation, determined the development direction of emerging businesses, and continued growth potential can be expected. As the Supreme People's Court proposed the guiding philosophy of multiple dispute resolution and source of litigation management, the company actively laid out the field of financial law technology, and the holding subsidiary Jinqiao is also committed to providing full-life cycle system solutions for financial legal disputes. In January 2022, Jinqiao Yifa, a holding subsidiary of the company, announced a partnership with Ant Blockchain to create a judicial online service platform to provide related operating services for Jizhi Auto Finance Co., Ltd. In June 2022, Jinqiao Yifa and Ant Zhixin announced cooperation in the field of financial legal disputes to jointly develop a “multi-dispute governance platform” and promote deployment in related industries. In the future, the company is expected to create one-stop Internet financial dispute solutions based on artificial intelligence and blockchain technology, further opening up the company's profit space as the financial justice technology business is further implemented.

Deepen the cultivation of smart solutions and collaborative growth of diversified products

The company integrates the advantages of business products into smart scenarios and smart building solutions, constructs a trinity product matrix of “IT (information technology) +AV (audio and video) +software”, accelerates the superposition and upgrading of the “Internet+Application+Cloud Service” business, and at the same time increases R&D investment to enhance the company's comprehensive business capabilities. In the field of smart government, the company has implemented projects such as e-government, digital conferencing, and command space solutions in Shanghai, Ningbo, Changzhou, etc., to help government customers achieve digital transformation. In the field of smart rule of law, the company built a mobile execution platform for the People's Court based on the SaaS platform model and obtained orders for construction projects from many court customers. In the first half of 2022, the mobile execution platform received a new contract amount of 23 million yuan, an increase of 331% over the previous year. In the future, as the fee contract rate increases, it will become the company's main revenue force.

In the field of smart education, it has received work on information technology projects such as the China-Europe International Business School Beijing Campus, Tsinghua University School of Finance, and Communication University of China Academic Center.

In the field of smart car companies, it received construction projects from large companies such as NIO Auto and China Nuclear Power. The company firmly promotes the two-way development of basic business and emerging business, accelerates the further development of emerging businesses and the continuous in-depth iteration of business models, becoming the cornerstone of future value growth.

Profit forecasting

It is predicted that the company's revenue for 2023-2025 will be 888 million yuan, 1.21 billion yuan, and 1.47 billion yuan respectively, and the EPS will be 0.05, 0.22, and 0.40 yuan respectively. The current stock price corresponding to PE is 293, 71, and 40 times, respectively, giving a “buy” investment rating.

Risk warning

Risks such as macroeconomic environmental risks, the risk of new products falling short of expectations, the risk of changes in industrial policies, and the growth rate of AI falling short of expectations.