Core ideas:
The company disclosed its mid-2023 report. In the first half of 2023, the company's revenue was 140 million yuan, an increase of 41.4% over the same period last year; its net profit was-190 million yuan and 22H1 was-170 million yuan.
The demand for digital and intelligent transformation in various industries is high, and the growth rate of 23H1 revenue is in line with expectations.
23H1, customers purchase all kinds of big data products and continue to expand, promoting the company's revenue growth. In terms of different industries: financial customers contributed 44.63 million yuan in revenue, up 41.9% from the same period last year, while public sector customers contributed 43.39 million yuan in revenue, an increase of 121.3% over the same period last year.
The rapid expansion of the product category of intelligent analysis tools is expected to form a new driving force for revenue growth.
The business revenue of 23H1, data development and intelligent analysis tools software was 25.31 million yuan, an increase of 203.0% over the same period last year. In the first half of 23, the company released vector database Hippo, large model training tool Sophon LLMOps and so on. We believe that with the commercialization of Microsoft Corp 365 Copilot and the launch of ChatGPT Enterprise Edition, the development of industry applications is expected to usher in a new breakthrough in 23Q4, which will greatly enhance the growth certainty of vector databases and other related products.
The increase in gross profit margin reflects the increase in the revenue share of software products with a higher degree of standardization.
23H1, the company's gross profit margin was 51.3%, up 3.0% from a year earlier, mainly due to an increase in the share of software revenue with higher gross margins. We believe that in the future, with the continuous improvement of the standardization of the company's software products, its share of revenue is expected to increase steadily, which will lead to an increase in gross profit margin.
Profit forecast and investment advice: the revenue from 23 to 25 is expected to be 540 million yuan, 780 million yuan and 1.07 billion yuan respectively. Considering the business field and business model, we select MongoDB, Snowflake Inc and Elastic of US stocks as comparable companies. Considering the scarcity of A-share big data Company and the development prospect of AI software tools products, we give the company a 23-year 25-fold PS valuation, corresponding to a reasonable value of 110.76 yuan per share, maintaining a "buy" rating.
Risk tips: the layout of technology giants in big data industry and the risk of intensified competition in the industry; the risk of large R & D investment and uncertainty in the transformation of results; the risk of uncertainty in digital transformation in downstream applications.