Event: The company released its semi-annual report for 2023. According to the semi-annual report, in the first half of '23, the company achieved revenue of 81.268 million yuan, yoy +44.7%, and realized net profit of 332,200 yuan, a year-on-year loss reduction of 95.26%. Among them, Q2's actual revenue for a single quarter was 483.66 million yuan, yoy +26.05%, net profit for the parent group was 3.3732 million yuan, yoy +77.45%. Performance was in line with expectations.
Tuoxin+veteran customers sell new categories, and revenue continues to grow at a high level. The company's main customers are concentrated in the securities industry. In the first half of '23, it began to focus on banks and other customers. According to the semi-annual report, in the first half of the year, the company won the ICBC's “localized backup software procurement project” and cooperated with ICBC to complete backup system construction. In areas of advantage, in addition to core trading system data replication products, the company's big data product 23 H1 has been widely used in market data distribution (including innovative market applications), and is also used as a basic tool for data collection to serve the digital transformation and upgrading of enterprises.
The comprehensive gross profit margin was 84.41%, -1.59pct year-on-year, which is a normal fluctuation. According to the semi-annual report, the decline in comprehensive gross margin was mainly due to the decline in gross margin of the software sales business (maintenance, migration, etc.) from 88.86% in the first half of '22 to 77.77%. The company's core business software (four major products, disaster recovery, backup, cloud disaster recovery, and big data) still maintained a high gross profit margin of 97.4%.
Continued high investment in R&D to supplement channel construction. According to the semi-annual report, the company's 23H1 R&D expenses were 406.30,800 yuan, YOY +31.38%, and the R&D expenses rate was 50%. According to the company's public account, i2DRM and other products continue to be iterated and i2HDFS big data real-time synchronization products are launched. At the same time, the company continued to supplement its technical strength, introduced senior industry technical experts, and recruited more than 70 fresh graduates at the same time to improve the organizational structure. 23H1. The company's sales expenses are 32.9125 million yuan, yoy +33.75%. The investment is mainly used to improve channel construction.
Accounts receivable amounted to 154 million yuan, yoy +57.17%. According to the semi-annual report, the main reason accounts receivable are high is that budget-based customers, that is, construction, inspection, and settlement customers in the second half of the year account is relatively high.
Actively cooperate to expand the ecosystem. According to the semi-annual report, since 2022, British Software, Feiteng Software, Quantum, SmartX, and XSKY Star Sky have jointly released various solutions such as data storage, backup, and data management. Furthermore, a new CloudCDM solution for data copy management has been created with HUAWEI CLOUD and launched it on the Royal Exchange of Nigeria.
Maintain a “buy” rating. Demand for data disaster recovery is strong, and the company is expected to continue to grow at a high rate throughout the year. We maintain the company's profit forecast. We expect revenue of $2.8, 4.1, and 560 million yuan for the year 23-25, and net profit of $0.74, 1.23 million, and 197 million yuan to maintain our “buy” rating.
Risk warning: Leading vendors have entered the market through mergers and acquisitions, and competition has intensified; pure software cannot become a mainstream trend; accounts receivable generate bad debts.