Event: according to the Q3 financial report of 2023, the company achieved revenue of 551 million yuan in the first three quarters of 2023, down 10.13% from the same period last year, and its net profit was 51 million yuan, down 18.34% from the same period last year. The revenue of the third quarter of 2023 alone was 161 million yuan, down 27.85% from the same period last year; the net profit of returning to the mother was 7 million yuan, down 72.63% from the same period last year, and the performance was lower than expected.
Business opportunities are delayed, in-hand order delivery is not as expected, and the company's performance is under short-term pressure. This quarter is the company's first negative growth since listing, mainly due to the lower-than-expected progress of policy promotion on the hardware side of the social security card this year, and the delay in the implementation of some existing orders, acceptance and delivery, and settlement of receipts, which has had a certain impact on the conversion of business orders and revenue recognition of the company. at the same time, the increase in R & D investment in cutting-edge technologies such as data products and government models has objectively put pressure on profits. It is worth mentioning that the company's performance on the software side related to social security and people's livelihood is still strong this year. In the revenue of "all-in-one Card and AIoT Apps", the revenue of the company's scenario application platform maintained the growth trend of the first half of the year, with an increase of 96.81% in the first three quarters of 2023 and 51% in the third quarter.
Create "government affairs super-brain", people's livelihood data service to take advantage of the situation. This year, the Ministry of Human Resources and Social Security issued the "Action implementation Plan for the Construction of Digital people's Society" (hereinafter referred to as "the program"), which will fully implement the action of building digital people's society. The "plan" makes it clear that we should adhere to data empowerment, give full play to the leading role of data as new factors of production, and let data play a greater role in policy implementation, supporting decision-making, serving the masses, and allocating resources. At present, Desheng Technology has a number of mature applications in the field of intelligent knowledge operation services. For example, in the field of data elements, a number of livelihood data products successfully launched by the company have been implemented in batches, establishing a leading edge in the livelihood data service industry. At the same time, the company is exploring the integration of AI technology and government affairs big data, the integration of social security, employment, financial and other services, to build a data-driven super brain. Up to now, the company's intelligent knowledge operation service has been launched in nearly 60 prefectures and cities in 17 provinces, including Guangdong, Hebei and Anhui, realizing "policy to find people", "matching between people and policies", and active services, with problem resolution rates of more than 98%. At present, the company has become a leader in the field of livelihood data, with the full implementation of the "plan", we firmly believe that the company's data service business will also usher in a huge industrial tuyere.
Profit forecast and investment suggestions: the operating income of the company from 2023 to 2025 is 10.28,12.40 and 1.521 billion yuan, and the net profit is 1.27,1.74 and 228 million yuan respectively.
Risk hint: social security card issuance progress is not as expected, data business expansion is not as expected, and macroeconomic growth is not as expected.