Overview of events:
On July 25, Tongxangbao released its "2023 half-year results KuaiBao". In the first half of 2023, the company is expected to achieve operating income of 278 million yuan, an increase of 27.61% over the same period last year, a net profit of 98.3898 million yuan, an increase of 43.38% over the same period last year, and a non-return net profit of 89.6311 million yuan, an increase of 51.30% over the same period last year.
High performance growth in the first half of the year, recovery of electronic charges for high-speed travel
The company's operating income and profits have achieved a relatively high growth. From the perspective of Q2 alone, the operating income is 144 million yuan, an increase of 39.48% over the same period last year; the return net profit is 57.3119 million yuan, an increase of 51.69% over the same period last year. The high performance increase is mainly due to 1) since the beginning of this year, the company has stepped up the ETC distribution and promotion of offline outlets, cooperation channels and online platforms, optimized the ETC product system, and the circulation led to an increase in sales revenue. At the same time, highway traffic increased significantly, resulting in a substantial increase in electronic toll service income. In the first half of the year, the revenue of intelligent traffic electronic toll business segment reached 174 million yuan, an increase of 37.95% over the same period last year. 2) the company further increased the market expansion of supply chain collaborative services and drainage business. In the first half of the year, the revenue of the intelligent transportation derivative business segment reached 13.0558 million yuan, an increase of 138.01% over the same period last year. 3) the company continued to carry out the special work of lean management and cost reduction to increase efficiency, the ability of cost control and management was further improved, and the overall profitability was improved. The gross profit margin of the main business in the first half of the year was 53.02%, an increase of 4.6 percentage points over the same period last year.
Grasp the entrance of "traffic +" flow, the data elements have a bright future.
As the core target of data elements in the field of transportation, Tongxangbao has a large number of data resources and is expected to benefit from the promotion of policies related to data elements. On the one hand, the company grasps the flow entrance of the "traffic +" scenario, collects many kinds of data resources in the process of ETC issuance and charging, and based on the ETC scenario, the company has provided customers with services such as drainage and supply chain coordination by building models and integrating products from insurance, banks and other financial institutions, and this business model has been recognized by the market. We believe that the scale of intelligent transportation derivative business is expected to increase rapidly in the future. On the other hand, the company's series of cloud control platform products can achieve cloud convergence, interactive sharing and fusion of all kinds of data, with a national accumulation of more than 10 billion photos, high-quality information of millions of events and more traffic related data. With the continuous evolution of policies related to data elements, the company will enhance the processing and processing capacity of data resources, strengthen the development and utilization of traffic data elements, and accelerate the value and commercialization of data elements.
Investment suggestion
Tongxangbao is the leader of ETC electronic charging industry and the only ETC issuing service organization in Jiangsu Province. In the short term, benefiting from the recovery of high-speed travel, electronic charging business is expected to pick up quickly; in the medium term, with the gradual expansion of the SaaS model in the market outside the province, the growth of intelligent operation management system is accelerated; in the long run, as the owner of massive data in the transportation field, the company is expected to significantly benefit from the open operation of data elements. It is estimated that the operating income of the company from 2023 to 2025 is 1.416 billion yuan, respectively, and the net profit is 2.14 million yuan, 297 million yuan, respectively.
Maintain a buy-An investment rating with a six-month target price of 29.19 yuan, equivalent to a dynamic price-to-earnings ratio of 40 times in 2024.
Risk Tips:
The market bottleneck risk of ETC issuance and sales business; the business expansion outside the province is not as expected; the data factor policy is not as expected.