華泰證券 ·  10/24/2023

The data industry has a good card position and maintains a “buy” rating

The company released its three-quarter report. 23Q1-Q3 revenue was 66.547 billion yuan, same increase of 12.77%, net profit of 167 million yuan, same increase of 21.04%, net profit of 119 million yuan, same increase of 3.77%; 23Q3 single quarter revenue of 27.506 billion yuan, same increase of 32.91%, net profit of 48 million yuan, same increase of 5.04%, net profit of 0.1 billion yuan, same increase of 2.99%. The company has a good card position in the data industry and focuses on the development of the industrial data sector. According to segmental valuations, the 23E industrial data service sector has revenue of 881 million yuan, with comparable companies averaging 23E 7.2xPS (Wind), giving 23E 7.2xPS (Wind); steel and silver e-commerce is expected to contribute 156 million yuan in net profit to listed companies in 23 years. Comparable companies average 23E 30.7 xPE (Wind), giving 23E30.7 xPE (Wind), with a target price of 34.59 yuan, maintaining “buying”.

Industrial data services: International influence is gradually expanding. Focus on data elements/AI industry changes 23Q1-Q3 The company's industrial data service sector achieved revenue of 598 million yuan, an increase of 19.0% over the previous year. Shandong Longzhong, an important subsidiary, had revenue of 116 million yuan, an increase of 43.27%, a net loss of 7.38 million yuan, and a decrease of 59% over the previous year. The quality of the company's industrial data service development continues to improve. In September 2023, the Australian FexGlobal Futures Exchange officially launched futures and options contracts based on the 62% forward spot price index for iron ore published by the company as the settlement benchmark, and the company's international influence is gradually expanding. The company has a good card position in the data industry. As of the end of 23Q3, there were 3,267 industrial data service personnel, an increase of 164 over the previous year, and the industrial data service capacity continued to increase. We believe that as the transformation of the data factor/AI industry continues to advance, the company may benefit fully from a good card position in the data industry, and related revenue growth may accelerate.

Steel trading services: The settlement volume of the 23Q3 platform is high, and the trading service may be steadily developing the settlement volume of the steel, silver and steel spot trading platform of steel and silver e-commerce, a subsidiary of 23Q3 holding, was 18.6447 million tons, an increase of 10.90% over the previous month, an increase of 31.81%; 23Q1-Q3, the settlement volume was 46.33 million tons, an increase of 16.56%. Steel and silver e-commerce continues to improve system risk control capabilities, optimize product structures, give full play to the platform's core enterprise links and service capabilities, and use next-generation information technology such as big data and cloud computing to empower upstream and downstream industries, accelerate industrial data connectivity and digital upgrading, and help build a transparent, efficient and collaborative supply chain system. We believe that the steady development of steel and silver e-commerce related businesses is expected to continue to drive the company's growth.

Embrace new AI technology and actively seize opportunities in the data industry

The company has a good position in the data industry. As of 23H1, the Steel Union database has built 21 major databases, more than 150 segmentation databases, and more than 8000 segmentation types. As the company continues to promote its products, its international influence has further increased. In terms of new technologies, the company actively uses LLM and AIGC technology to optimize product services and improve user experience. In the data industry, the company actively grasps opportunities in the data element industry and has signed strategic cooperation agreements with the Shanghai Digital Exchange and the Shenzhen Data Exchange. We believe that with the continuous development of the data element industry and the iteration of AI technology, the company's industrial data sector is expected to accelerate.

Risk warning: The risk that the expansion of industrial data services is lower than expected, and the risk that e-commerce transaction volume of steel and silver will decline.

The translation is provided by third-party software.

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