Event: on August 29, Shanghai Iron and Steel Federation released its semi-annual report of 2023. The company achieved revenue of 39.041 billion yuan in the first half of the year, an increase of 1.89% over the same period last year, a net profit of 119 million yuan, an increase of 28.96% over the same period last year, and a non-net profit of 88 million yuan, an increase of 4.05% over the same period last year. In the second quarter alone, the company achieved revenue of 21.53 billion yuan, down 5.50% from the same period last year; net profit from home was 64 million yuan, up 20.22% from the same period last year; and 51 million yuan was deducted from non-net profit, an increase of 6.65% over the same period last year.
In the first half of 2023, the company achieved a gross profit margin of 1.56%, year-on-year-0.04pct; net profit rate of 0.54%, year-on-year + 0.10pct. The overall expense rate of the company is 0.87%, year-on-year-0.07 pct, in which the sales expense rate, management expense rate and R & D expense rate are 0.54%, 0.18% and 0.16% respectively, which are + 0.06pct,-0.05 pct and + 0.01pct respectively.
The business of industrial data service has expanded rapidly, and the number of users has increased significantly. The 2023H1 industry data service achieved business income of 396 million yuan, an increase of 30.95% over the same period last year, of which data subscription revenue was 220 million yuan, an increase of 6.62% over the same period last year. Thanks to the efficient development of offline activities, business promotion, conference training, and research and consulting income increased significantly. Based on proprietary industry big data assets, experienced expert analysts, unique model methodology and cutting-edge big data technology, the company currently covers more than 100 industrial chains and tracks the price changes of more than 900commodity varieties every day. more than 280000 paying users In the first half of the year, the number of paid households of data subscription service web end, mobile terminal and data terminal increased by 14.64%, 16.79% and 47.76% respectively compared with the same period last year.
Steel trading services have developed steadily. Steel trading service is the main business of the company for many years, and its income is growing steadily. The order for steel trading services of 2023H1 reached 451800, up 11.37 percent over the same period last year; the settlement volume of the steel silver platform was 27.6854 million tons, up 8.14 percent over the same period last year; the operating income was 38.643 billion yuan, up 1.66 percent over the same period last year; and the net profit belonging to the shareholders of the company was 161 million yuan, up 7.50 percent over the same period last year. In 2023, the Shanghai Municipal Economic Commission formulated and issued the Shanghai Action Plan for promoting the High-quality Development of the Industrial Internet platform (2023-2025), which puts forward targets for the transaction volume of the industrial Internet platform, which is expected to promote the future development of the company's steel trading platform.
AI enables product and service upgrades. The company relies on the advantage of its own data breadth and depth, and uses cutting-edge big data analysis and AI technology to research and develop application service products with industry depth and breadth, providing enterprises with timely and accurate real-time industry multi-dimensional data and in-depth analysis and forecasting, while enabling customers to make management decisions in the whole business process of purchasing, production, sales, inventory, logistics and settlement. The company plans to launch "Xiaogang Robot", which is based on LLM and AIGC technology to provide users with search, generation and access services for price, data, information, reports, meetings and other contents in dialogue. Internal technical testing and professional testing have been completed in the first half of the year.
Investment suggestion: we estimate that the operating income of the company from 2023 to 2025 is 881.44 yuan, 1015.83 yuan and 117.127 billion yuan respectively, the net profit is 2.40,3.44 and 490 million yuan respectively, and the corresponding EPS is 0.75,1.07,1.53 yuan respectively. Maintain a "buy" rating.
Risk hints: the policy landing is not as expected, the expansion of industrial data services is not as expected, and the risk of unstable income from steel trading business.