Events:
On August 3, the company answered investors' questions: the company's participation in the film "Hot" will not have a significant impact on the company's performance. The film "Hot" was released on July 28, 2023 and has been released for eight days, with a cumulative box office of 592 million yuan.
Comments:
1. The company recently released its half-year 2023 results KuaiBao: total revenue reached 4.436 billion yuan in the first half of 2023, an increase of 7.74% over the same period last year, mainly due to the growth of smart city digital business and national new media business. In the first half of 2023, the company won the bid for more than one million smart city digital projects, with a total amount of 1.34 billion yuan, an increase of 29% over the same period last year. The net profit of returning home was 361 million yuan, down 11.21% from the same period last year, mainly due to the increase in business costs and the company's increasing technology accumulation in areas such as smart home and smart city digitization. Realize deduction of non-return net profit of 297 million yuan, yoy-12.06%. In the quarter, Q2 achieved a net profit of 207 million yuan, down 18.88% from the same period last year, while the net profit from non-return was 173 million yuan, down 18.49% from the same period last year.
2. Continue to expand the digital plate transformation. The company established Huasu Technology Company and set up R & D centers in Hangzhou, Ningbo and Xi'an, focusing on the four core product lines of "urban IoT perception platform, grass-roots governance platform, smart space platform and big data platform". To promote the platform transformation of customer-gathering business and national expansion, smart city digital business has become an important engine of the company's business development.
3. It is rich in copyright resources and has remarkable advantages in content service. The company has attracted more than 100 well-known program content suppliers and many ordinary program content suppliers at home and abroad to participate in the construction of program content cooperation system, and has built one of the largest digital program content libraries in the country. it has a million hours of digital program content media resource library, while focusing on high-quality content aggregation, vertical field segmentation and local content operation. Developing exclusive content copyright management and increasing content originality will expand the company's differential competitive advantage of "new media + new network", improve the quality of content service, and then stimulate the new growth of revenue.
4. Investment proposal: it is estimated that the operating income of the company in 23-25 years is 96.68,9958Compact 10.256 billion yuan, and the net profit of returning to the mother is 854 Plus 917,987 million yuan, respectively, and the PE is 19.05X/17.73X/16.49X respectively. Give a "recommended" rating.
5. Risk tips: new business revenue falls short of expectations, industry competition intensifies, and smart city projects decrease.