"AI+ manufacturing" grew by 81.3%. In the first half of 2023, the total revenue of the company was about 924 million yuan, an increase of 43.1% over the same period last year. Of this total, the revenue of AI+ manufacturing sector was about 611 million yuan, an increase of 81.3% over the same period last year, and the proportion of manufacturing revenue increased to 66.1%. The company's gross profit margin was 32.4%, an increase of 0.5% over the same period last year. The adjusted net loss is 39.4 million yuan, down 33.4% from the same period last year, and the adjusted net loss rate is 4.3%, which is 53.3% lower than the same period last year. The company is expected to achieve a break-even point in the short term.
As a typical artificial intelligence enterprise in AI+ manufacturing industry, the sustained rapid growth and improvement of business indicators reflect the company's pragmatic development ideas and efficient AI engineering landing capability. We have always believed that the strong demand track is the basis for the survival and healthy development of independent third-party AI, the company from the establishment of the initial choice of manufacturing to B field is a wise move, out of a unique development path. The company is experiencing a transition from AI1.0 to AI2.0, and the strong demand track has created a unique growth process of the company's MMOC architecture (AI1.0). The large industrial model of generative AI, AInnoGC, will further tap the practical value of industrial big data in various vertical application scenarios and become a new engine to promote the company's benign and sustainable development.
AInnoGC-15B industrial model product matrix is officially released. On September 1, 2023, the company released a self-developed large model AInnoGC-15B, which uses the open source transformer architecture to reconstruct the industrial knowledge base through knowledge distillation, pre-training, fine-tuning and RLHF to achieve a parameter scale of 15 billion. The company will soon launch a large industrial model with AInnoGC-36B,360 parameters.
The launch of the industrial model practices the landing of the company's AI2.0 generative artificial intelligence, which currently covers application scenarios including ChatBI,ChatDoc and ChatRobot, in which ChatBI and ChatDoc have been commercially landed in a large beer company and Chongqing Zhizhao training Center, and the pre-research products of ChatRobot are also demonstrated on the spot at the press conference. ChatBI connects all the industrial software in manufacturing enterprises through large industrial models, such as MES manufacturing execution system, QMS quality management system, EAM equipment management system, LIMS laboratory management system and so on. According to the collection of actual operating data, real-time automatic generation of analysis charts through multiple rounds of natural language dialogue is a leap of traditional BI. ChatDoc is the AI practice of the application of industry knowledge base. The company has undertaken the intelligent manufacturing base of public vocational skills training in China (Chongqing). Combined with the industrial model, it has constructed the AI2.0 intelligent training platform of the training center, and created AInnoGC teaching assistant for teachers and AInnoGC learning assistant for students. The platform can automatically generate syllabus, industrial pictures, after-class exercises, intelligent summary, automatic translation, explanation and other generating functions through the natural language dialogue mode, which greatly improves the teaching efficiency and vocational training effect of the training center.
ChatRobot is a prophecy product, and the large industrial model is used as an instruction for the brain to directly control the industrial robot to complete the CV functions of "identification", "positioning", "measurement" and "detection" through dialogue mode. it is also possible to realize the automatic design, deployment and execution of industrial production lines in the future.
Investment advice. In 2023, the average PS of comparable companies was 15 times, that of American companies was 12 times, and that of Chinese companies was 20 times. Taking into account the overall macroeconomic environmental factors and the substantial expansion of the company's revenue scale brought about by several years of rapid growth, we have lowered the company's revenue forecast for the next three years to a reasonable and healthy growth rate. The company's operating income from 2023 to 2025 is expected to be 19.61 (- 13.6%) / 25.02 (- 25.0%) / 3.265 (- 33.2%) respectively. Income CAGR for the period 2022-2025 was 28%. Taking into account the revenue growth, gross profit margin, industry status, and the differentiated competitive advantage of the company's industry and strong demand track, we give Innovation Qizhi 8 times PS (unadjusted) in 2023, then the target market capitalization is 15.691 billion yuan (- 13.6%), calculated on the basis of 565.05 million total share capital (originally 559.3 million shares). The target price is 27.77 yuan per share (- 14.5%), corresponding to 30 Hong Kong dollars per share (- 19.2%), maintaining a "better than the market" rating.
Risk hint. The slowdown in the company's manufacturing sector affects the overall income growth, the intensification of competition in the industrial quality inspection field has led to a lower-than-expected increase in revenue growth and gross profit margin, and the business landing of the big model is not as expected. Overseas restrictions affect the relevant market valuation and other factors.