Incident Overview
Torus released its semi-annual performance report on August 26, stating that revenue for the first half of 2023 was about 444 million yuan, an increase of 4.58% over the previous year; net profit attributable to shareholders of listed companies was about 69.64 million yuan, a year-on-year decrease of 6.68%; and basic earnings per share were 0.0907 yuan, a decrease of 13.12% over the previous year.
Analytical judgment:
Changes in the macro environment and tight government budgets have affected the company's revenue growth rate and profit.
2023H1, corporate finance, manufacturing, energy and other enterprise customer business revenue was +9.38%, public safety industry revenue was +4.81%, and government industry revenue was +3.44%. The revenue of the Internet and media industry changed -8.35% year on year, showing some fluctuation. At the same time, in 2023, the company increased its investment. The sales expense rate and management cost rate and R&D expense ratio were 19.21%, 21.15%, and 15.17%, respectively, +1.63, 2.74, and 3.68 pct, year-on-year, respectively.
The growth rate of AIGC-related business is impressive, and the cloud and data service business is growing healthily.
1) In the first half of 2023, the AIGC business achieved revenue of 7.821,800 yuan, +206.02% compared to the same period last year. The main business involved applications such as automatic writing of consumer insurance reports and intelligent media assisted manuscript writing. With the release of Tuotian.M's big model for the media industry, the implementation of big model applications in the media field will usher in a new wave of business opportunities. The company has signed a strategic cooperation agreement with Communication Brain and jointly released the “Big Communication Model”. In the future, the two sides will jointly develop business in this field. In addition, the company has already won a bid for a project by People's Daily. In the process of implementation, the company will co-create more media AIGC applications with users. 2) The company's cloud and data services business achieved revenue of 181 million yuan, +21.68% over the same period last year. The company used a data push service to provide Yuntian Lifei with millions of news, official documents, announcements, and policy data from the Guangdong government website (not full volume) in the past two years as a pre-training data set for its large model. Currently, the company has 150 billion+ billion of authoritative, high-quality public data, which ranks among the largest in the industry, covering over the past 10 years of newspaper data, mainstream Internet news data, news information client data, government portal data, authoritative third-party platform data, and industry information data. In the future, the company is expected to provide high-quality pre-training data services in different vertical fields to more MaaS service providers across the country.
The Haibei search database V10 was released, and the domestic database went one step further.
The Haibei search database V10 was released, and the domestic database went one step further. Haibei currently serves many industry segments such as security big data, media big data, government big data, and military big data. It has a series of customers such as the Ministry of Public Security, Xinhua News Agency, the State Administration of Market Supervision and Administration, the General Administration of Customs, the Patent Office, and the Trademark Office. It has many successful experiences in national benchmark projects and localized service capabilities, and can be used as a domestic replacement for the foreign open source software ElasticSearch. At present, Haibei has completed adaptation work with domestic chips such as Longxin, Haiguang, Feiteng, and Kunpeng, as well as domestically produced operating systems such as Kirin and Tongxin UOS, which won the bid, fully meets the requirements of Xinchuang and localized replacement requirements.
Investment advice
According to the company's interim report data, we lowered the company's revenue forecast of 1220/15.44/1,935 million yuan to 23-25 revenue forecast of 10.92/13.96/1,722 billion yuan; lowered the 23-25 earnings per share (EPS) forecast of 0.43/0.63/0.83 yuan, to 0.30/0.37/0.46 yuan respectively, corresponding to 18.68 yuan/share closing price on August 25, 2023, PE respectively It was 61.70/50.03/40.77 times, maintaining the company's “buy” rating.
Risk warning
Increased competition in the industry has led to a decline in profit levels, the core technology breakthrough process has fallen short of expectations, and there is a risk of loss of the company's core talent team.