Incident: The company released its semi-annual report for 2023. In the first half of 2023, the company achieved revenue of 3.636 billion yuan, an increase of 17.53% over the previous year, and net profit of 474 million yuan, an increase of 14.80%; revenue for the second quarter of 2023 was 2.161 billion yuan, an increase of 27.80%; net profit of 238 million yuan, an increase of 26.65% over the previous year. The performance was basically in line with expectations.
Fintech continues to expand, and overseas markets continue to break through. The company's fintech business achieved revenue of 2,342 billion yuan in the first half of 2023, an increase of 36.48% over the previous year. In terms of smart financial equipment, the company continues to consolidate its leading position in the industry. At present, the company has ranked first in the sales volume of smart financial equipment at domestic outlets for 15 consecutive years, and has been shortlisted for smart financial devices in all six major state-owned head offices and 12 joint-stock banks. Overseas markets are driven by the explosion in the financial industry in developing countries around the world. We continue to promote intelligent solutions for the number of bank branches globally, achieving revenue of 794 million yuan, an increase of 96.33% over the previous year. At present, radio and television transportation products and services have covered more than 110 countries and regions around the world, and the business covers the five regions of Asia Pacific, Middle East, Europe, Africa and America. Future performance is expected to grow further.
Continue to explore the data application market and lead the development of data trading in Guangdong. The company was one of the first listed companies to enter the data element market. The Guangzhou Data Exchange is a data trading agency under the supervision of the Guangdong Provincial Administration of Government Services and Data Administration. It operates under a “one multi-base, multi-platform” architecture, explores the pilot construction of data trading service bases in cities with mature conditions, and authorizes the provision of related data transaction supporting services. Service bases in Foshan, Zhanjiang, Huizhou, and Lhasa have been unveiled and operated one after another.
Up to now, the Guangzhou Data Exchange has achieved a total turnover of over 1.6 billion yuan, 1,081 members have entered the market, covered 23 industry categories, and made good progress in the data trading business. The company plans to become a data service provider and promote the “first-level market” of data. At this stage, it is actively cultivating the ability to build and operate first-level data element market business. At the same time, it plans to participate in public data operation services as a big data technology service provider and build core competitiveness in public data processing, processing, operation, and transactions.
Profit prediction and investment suggestions: Considering that data elements are still in the early stages of industry development, this performance estimate does not take into account the increase in performance brought to the company after the development of data element circulation. We expect the company's operating income for 2023-2025 to be 85.96/97.81/11.081 billion yuan, and net profit to parent to be 1,004/12.00/1,410 billion yuan respectively, maintaining the “buy” rating.
Risk warning: The development of the data element industry falls short of expectations, macroeconomic growth falls short of expectations, overseas business expansion falls short of expectations, valuation models and profit forecasts fall short of expectations