Brief comment on performance

On October 25, 2023, the company disclosed its third-quarter results report: the company's revenue in the first three quarters was 1.43 billion yuan, up 5.8% from the same period last year; the net profit was 60 million yuan, up 66.5% from the same period last year; and the net profit was 10 million yuan after deduction, down 44.9% from the same period last year.

Business analysis

The company's single Q3 realized revenue of 490 million yuan, an increase of 8.2% over the same period last year; the gross profit margin was 31.7%, an increase of 3.9pct over the first half of the year, mainly because the company focused on higher-quality projects. The company's single Q3 cost increased by 8.6% compared with the same period last year, of which the sales expense rate and management expense rate decreased by 5.0% and 8.3% respectively, a decrease of 0.9pct and 0.1pct over the same period last year. R & D investment maintained growth, with a single Q3 R & D expense rate of 14.2%, an increase of 0.7pct over the same period last year. The company's single Q3 deduction of non-parent net profit was-10 million yuan, down 180.3% from the same period last year, mainly due to an increase in interest charges on convertible bonds and an increase in financial expenses of 10 million yuan. The company's single Q3 realized a net profit of 40 million yuan, mainly due to an increase of 48 million yuan in government subsidies received during the reporting period compared with the same period last year.

We will actively promote the construction of data business and information innovation, and the number of winning bids for tens of millions of large orders has increased sharply compared with the same period last year. In September, the company officially launched the "T+F+N" data strategy, which aims to participate in the construction of the digital economy through penetrating financial scenarios. In terms of Xinchuang, the company completed mutual certification of product compatibility with Beijing Flywheel data Technology Co., Ltd. (SelectDB), a new generation of real-time data warehouse manufacturer. In the first half of 23, the number of winning bids for 10 million-level projects increased by 400% compared with the same period last year. On October 11, the company again won the bid for a joint-stock bank compliance audit application system development project, with a winning amount of nearly 40 million yuan, and sufficient business opportunities for large orders. it can provide continuous guarantee for the company's follow-up growth.

Earnings forecast, valuation and rating

According to the triennial report data released by the company and considering the interest payment of convertible bonds, we maintain the company's forecast operating income of 22.9 shock 26.7 / 3.11 billion yuan in 2023-2025, an increase of 16.1% over the same period last year. 16.3%, 16.4%. The estimated net profit of homing from 2023 to 2025 is 1.2x1.5 / 180 million yuan, an increase of 95.9%, 24.7% and 23.5% over the same period last year, corresponding to a PE of 35.7pm 28.9 times, and the "overweight" rating is maintained.

Risk hint

Banking IT expenditure is lower than expected; industry competition aggravates risk; lifting risk; major shareholder pledge risk.