Event: 23H1, the company achieved revenue of 2.19 billion yuan, an increase of 7.89% over the same period last year, a net profit of 220 million yuan, an increase of 0.55% over the same period last year, and a net profit of 210 million yuan, an increase of 32.97% over the same period last year.

In a single quarter, 23Q2, the company achieved revenue of 1.26 billion yuan, an increase of 10.93% over the same period last year.

Deepen the main business to continue to tap customer demand, Internet advertising is expected to rise steadily in the second half of the year. 23H1, the Internet advertising market rebounded, according to QuestMobile,23Q1 Internet advertising market growth of 2.3% year-on-year growth of 8.1%. With the recovery of the market, the company deepens customer service, expands high-quality customers and projects, and achieves steady revenue growth: 1) promote media feature programs such as CCTV, brand advertising for customers in telecom operators, finance and other industries; 2) advertising and brand communication services for China Resources Group, China Mobile Limited, Yili and head automobile customers. In the second half of the year, with the further repair of the economy, the Internet advertising market is expected to continue to maintain a steady upward trend.

Non-current accounts affect net profits, with profit growth of more than 30% in the first half after deducting. 23H1, the company's gross profit margin reached 21.2%, an increase of 5.5 pct over the same period last year; the sales / management / R & D expense rate reached 6.93%, 1.22%, 1.1% respectively, an increase in 1.85/0.15/0.21pct over the same period last year. 2022H1, affected by the changes in the fair value of Juzi Biology, the company's non-recurrent profit and loss reached 54.93 million yuan, while 23H1 was only 2.965 million. After deducting non-recurring profit and loss, 23H1's net profit deducted from non-return reached 210 million yuan, an increase of 32.97% over the same period last year.

Expand business boundaries and explore the direction of AI and data elements. The company actively explores the areas of artificial intelligence and data elements: 1) reach a strategic cooperation with iFLYTEK during the reporting period, making use of its own customer resources, professional digital marketing experience, creative communication services and other rich resources, through AI to jointly enhance smart marketing capabilities and jointly develop multimodal intelligent marketing tools 2) carry out strategic cooperation with Guiyang big data Exchange on the construction of big data trading platform to drive future industrial development, take the lead in exploring the cultivation of data elements market in the country, fully release the value of data elements, and help relevant customers to achieve innovative breakthroughs in the field of capitalization of data elements.

Profit forecast and investment rating: the company continues to tap the potential of the stock of customer value, expand customers in the automotive industry, performance continues to grow. The company has teamed up with iFLYTEK, combined with iFLYTEK technology and the resources and experience of the three banks in the marketing industry, to explore intelligent marketing and be optimistic about the marketing efficiency of AI enabling advertising. We maintain our previous profit forecast that the company's homing net profit for 2023-2025 is expected to reach 10.5 shock 1.42 billion yuan, a year-on-year increase of 43%, 24%, 9%, and a "buy" rating.

Risk tips: core customer churn risk, gross profit margin decline risk, AIGC technology and application lower than expected risk