Incident: On August 14, 2023, the company released the 2023 semi-annual report. During the reporting period, the company's operating income was 690 million yuan, an increase of 54.59% over the previous year; the net profit of Gimu was 52.962 million yuan, an increase of 206.73% over the previous year. Among them, the company's revenue for the second quarter was 396 million yuan, an increase of 133.5% over the previous year, and net profit for the second quarter was 40.77 million yuan, an increase of 166.5% over the previous year.
Revenue growth has exceeded expectations, revenue inflection points have been confirmed, cash flow has improved dramatically, and the gap between revenue and remuneration is significant. 2023H1's revenue was 690 million yuan, an increase of 54.59% over the previous year. Previously, the market expected a revenue growth rate of 25-30% in the first half of the year. Actual growth exceeded expectations. It is speculated that it was mainly due to an increase in the company's project acceptance during the reporting period, accelerated revenue confirmation, and at the same time, the company increased its market expansion efforts and improved delivery efficiency. Cash inflows increased by 24.6% in the first half of the year, slightly lower than revenue growth, but there was a significant improvement compared to the previous four quarters. Net profit was 52.9612 million yuan, successfully turning a loss into a profit; in the second quarter, real cash expenditure increased 4.8% year-on-year. The growth rate was lower than that of cash inflows, and the fee control effect was remarkable.
In-depth cooperation with Huawei was signed, creating a contract amount of 86.15 million yuan, an increase of 54% over the previous year. In the first half of the year, the company increased GIS-related projects for central enterprises such as energy and communications, and signed a new contract amount of 86.15 million yuan. At the same time, the company cooperated deeply with Huawei to jointly release the Yugong open source spatial database to provide spatial data storage, calculation and management capabilities.
Seize the development opportunities of digital twins and develop together in the government and enterprise fields. 1) Government sector: The company won bids for several smart governance projects, and the contract amount related to big data increased by about 47% year-on-year in the first half of the year; 2) In the enterprise sector, the company participated in smart airport projects such as Tianhe Airport. Map Hui achieved a breakthrough in contract amount, an increase of 164% over the previous year; the renewal rate for major customers reached more than 90%.
Embrace data elements and cultivate strengths to seize opportunities. Data elements have become the core of the digital economy. The company actively embraces the data element industry with the advantage of products being a support tool to form data assets: 1) Providing spatial data governance tools. The company's GIS basic software products can be applied to data governance, forming standard data products, and data product display applications; 2) The latest version of SuperMap GIS: June 2023, the latest version was launched. By developing digital twin applications, the company is deeply involved in water conservancy, meteorology and other industries to achieve data penetration among various industries and lay the foundation for participating in the whole process of utilizing the value of data elements.
To enhance AI empowerment, Chaotu Research Institute has covered all hot AIGC directions. 1) CV big model: integrating SAM visual big models to help with full remote sensing elements and fine-grained segmentation; 2) NLP big model: introducing vertical areas of the industry and providing privatization deployment plans; 3) Multi-modal big model: developing integrated application projects to enable comparison before and after rural transformation; 4) Releasing SuperMap GIS 2023; 5) Exploring the layout of AI rendering (NeRF) and AI generation of 3D scenes.
Localized GIS leads the way and maintains the “increase in holdings” rating. The profit forecast is maintained, and the revenue forecast for 2023-2025 is 19.44, 2.91 billion yuan, and 2.87 billion yuan, and the profit forecast for 2023-2025 is 285 million yuan, 382 million yuan, and 493 million yuan. Corresponds to 2023 39 times PE. Maintain the “increase in holdings” rating.
Risk warning: The industry's credit and innovation promotion progress is low expectations, demand for natural resource informatization risks falling short of expectations, and government demand is delayed.