The company's intelligent transportation electronic toll collection business grew at a relatively high speed as the high-speed traffic resumed, and new applications such as ETC+ vehicle-road coordination further opened up business space; new intelligent transportation cloud products such as high-speed brain, AI video analysis cloud control platform and free cloud toll collection continued to convert to revenue; intelligent transportation derivative business maintained rapid development, broad overall business space, and maintained the "highly recommended" investment rating.
Event: the company released its results for the first three quarters of 2023, KuaiBao. In the first three quarters of 2023, the company achieved operating income of 452 million yuan, an increase of 24.82% over the same period last year, a net profit of 155 million yuan, an increase of 45.39% over the same period last year, and a deduction of 146 million yuan for non-net profit, an increase of 50.19% over the same period last year. Of this total, 23Q3 achieved a revenue of 174 million yuan in the single quarter, an increase of 20.62% over the same period last year, a net profit of 57 million yuan, an increase of 49.01% over the same period last year, and a deduction of 57 million yuan in non-net profit, an increase of 48.47% over the same period last year.
The growth of ETC business brings solid support to the performance, and new applications such as ETC+ vehicle-road coordination further open up the business space. In the first three quarters of 2023, the company's intelligent transportation electronic toll business achieved revenue of 284 million yuan, an increase of 33.35% over the same period last year. Since the beginning of this year, the company has stepped up the promotion of ETC issuance, and the issuance volume has led to a substantial increase in ETC issuance business income; at the same time, highway traffic has increased significantly in the past 23 years, resulting in a significant increase in electronic toll service income. In addition to the steady growth of ETC business with the steady growth of new car ownership and second-hand car transactions, the "Optimization and upgrading Project of Expressway Network Toll system" issued by the Ministry of Transport in 2022
(draft for soliciting opinions) and "Traffic Watchman" (TraffiCatcher), an intelligent solution for expressway service based on ETC issued by the Road Network Center of the Ministry of Transport, all mentioned the construction of vehicle-road coordination system based on ETC. If the plan is implemented, it is expected that the ETC-based vehicle-road collaborative construction on the highway will put forward new requirements for the ETC equipment on the side and the side of the road, which will bring about the demand for upgrading and replacement of ETC equipment, and open up new space for ETC-related business manufacturers such as Tongxingbao. In addition, ETC+ vehicle-road collaboration will further enrich the range of traffic data available to ETC equipment and enable the development and application of traffic data elements.
Smart transport derivative business to maintain high growth, smart transport cloud new business into revenue is expected. The company achieved 151 million yuan in revenue from intelligent transportation cloud business in the first three quarters, and new products such as high-speed brain, AI video analysis cloud control and free flow cloud charging solutions are all in the process of continuous promotion, and the new product expansion is expected to bring a new increase in revenue for the company. In the first three quarters of the company, the company further increased the market expansion of supply chain coordination services and drainage business, realizing 17.0277 million yuan in revenue from the intelligent transportation derivative business section, an increase of 87.39% over the same period last year. At present, the business is still in the stage of low base and high growth, and its share of the company's revenue is expected to grow rapidly in the future.
Maintain the "highly recommended" investment rating. The company's intelligent transportation electronic toll collection business grew at a relatively high speed with the resumption of high-speed traffic, and new applications such as ETC+ vehicle-road coordination further opened up business space; new intelligent transportation cloud products such as high-speed brain, AI video analysis cloud control platform and free cloud charging continued to convert to revenue; and intelligent transportation derivative business maintained rapid development, with broad overall business space. It is estimated that the company's net profit in 2023-2025 is 2.22 billion yuan, corresponding to 2023-2025 PE in 42-32-24. Maintain the "highly recommended" investment rating.
Risk tips: policy promotion is not as expected; intelligent transportation operation management system business development is not as expected; downstream demand fluctuations.