Revenue is growing steadily and profitability is gradually recovering. From 2019 to 2021, the company's operating income was 2.45 million yuan, an increase of 43.61 percent, 37.58 percent, 33.71 percent, and 0.43 million yuan, respectively, and its net profit was 0.77 million yuan. The year-on-year growth rate was 22.06 percent, 79.62 percent, 26.24 percent, and the compound annual growth was 38.24 percent and 40.4 percent, respectively. In 2022, the company's business was affected by the domestic COVID-19 epidemic, the revenue growth slowed down, and revenue increased by 2.78% compared with the same period last year. Due to the company's increased investment in technology research and development and the increase in the salary of managers and staff, the net profit decreased in 2022 compared with the same period last year. The net profit of homing home decreased by 9.86% compared with the same period last year, and the profit end was under short-term pressure. With the recovery of the epidemic in 2023, the company is expected to return to high growth.
The investment in R & D continues to increase, and the core competitiveness continues to improve. In 2022, the company invested 112 million yuan in R & D, an increase of 22.52% over the same period last year. The company attaches importance to the continuous improvement of technical capability and product innovation capability, continues to improve the company's core competitiveness and market influence, and relies on the company's solid foundation in the field of court information. The company's main business maintained sustained and stable development in 2022. At present, it has related qualifications such as Class A qualification Certificate and AAA Credit Grade Certificate for Secret Information system Integration, and has participated in the formulation of 12 industry standards. At present, the company has formed 2 invention patents, 113 software copyrights, and 19 software product certificates, with a strong technical level.
Focus on legal information construction, smart implementation of the market share first. Since its inception, the company has ploughed the court information construction to help the industry digitalization, intelligent transformation and upgrading. In response to the national information development strategy, after more than 20 years of industry accumulation and development, around the construction of the wisdom court, the company has formed four core products of "wisdom trial", "wisdom execution", "wisdom service" and "wisdom management". The market share of companies in different fields ranks in the forefront. 1) the field of intelligent trial: the company's basic software "trial process management system" covers a total of 989 courts across the country, accounting for 28.22% of the total courts. The market share is the second in the industry. 2) the field of intelligent enforcement: the company's basic software "enforcement case management system" covers a total of 2749 courts across the country, accounting for 78.45% of the total courts, with the first market share in the industry; 3) among the subdivided software in the field of intelligent enforcement, the company's judicial inspection and control system software has a high market share, of which the "total network inspection and control system" has the first market share in the industry.
Leading the construction of smart courts, AI+ law is expected to open up room for growth. At present, the company continues to cultivate the application of the court industry, increasing the research and development of big data, artificial intelligence, mobile Internet, blockchain and other related technologies, and actively promoting the application of artificial intelligence, big data and other related technologies in the judicial field. Big data analysis, natural language processing, multimodal machine learning and other technologies are used to continuously improve the ability of perceptual and cognitive platform. Construct the knowledge service ability supported by case elements, adjudication rules and document assembly rules, explore and promote the integrated application of artificial intelligence in the fields of litigation service, trial enforcement, judicial management, and so on, so as to improve the level of intelligent application of products. expand intelligent application scenarios to meet the court's needs for intelligent applications and promote the court's digital transformation.
Investment suggestion: from 2023 to 2025, we expect the company to achieve operating income of RMB 586 million, an increase of 26.58%, 26.28%, 26.16%, and a net profit of 1.09, 133, 000, respectively. The current stock price corresponding to PE is respectively times that of 38-31-25. Cover for the first time and give a "recommended" rating.
Risk hints: macroeconomic fluctuation risk; technology research and development progress less than expected risk; supply chain risk; policy promotion is less than expected risk; consumer demand is less than expected risk; industry competition intensifies risk.