Summary of events: the company released the third quarter report of 2023 on October 24, 2023. In the first three quarters of 2023, the company achieved operating income of 373 million yuan, net profit of 18 million yuan and non-return net profit of 13 million yuan.

Strategic investment Nanjing core transfer, break through the business boundary to explore new markets. In the first three quarters of 2023, long-term equity investment changed by 1497.42%, mainly due to the new investment in Nanjing Core Chuanhui Electronic Technology Co., Ltd. Xin Chuanhui is a state-level small giant enterprise specializing in special new giants and high-tech industry and software enterprises in Jiangsu Province. Its main business is to provide software and hardware services to military research institutes. The company's investment in it is mainly for two purposes: 1) it is optimistic about the long-term development of the military field, which is suitable for long-term layout; 2) the company's existing business is concentrated in the civilian direction, and the company can coordinate and complement with core transfer channels and resources. try to extend the scene application and business to the non-civilian direction. This investment will promote the company's breakthrough in the customer boundary and the exploration of the business boundary.

The project of issuing convertible bonds has progressed steadily, and the process of digital transformation and upgrading has been gradually deepened. In the first three quarters of 2023, the change range of monetary funds was 77.90%, and the change range of financial expenses was-482.59%. This was mainly due to the fact that the company publicly issued convertible bonds in March 2023, raised funds to the account, and confirmed the issuance of convertible bonds corresponding to unrecognized financing expenses. The total amount of funds raised by the company in issuing convertible corporate bonds to non-specific objects is 407 million yuan. the projects raised are: 1) urban lifeline safety monitoring platform construction project for municipal infrastructure; 2) digital twin computing center and production base construction project; 3) supplementary liquidity.

The vertical field data is rich and the industry has remarkable advantages, speeding up the layout of the "digital intelligence" product system. 1) "data in the table" will fully reflect the value of the company. The company deeply ploughs the mid-stream data collection and processing, and the downstream data application, and has rich spatio-temporal data accumulation in the traditional business through field data collection and indoor data processing, and has accumulated certain data after years of project expansion, including data related to above-ground and engineering construction, as well as underground pipelines, subways, water and other aspects. 2) launch data products to give full play to the value of geographic information data. The company independently developed and built a "three-dimensional digital base" platform to enable the business transformation of various professional sectors. In the future, the company's information products will continue to track, investigate and mine the needs of different industries on the basis of the "three-dimensional digital base". Different data scenes are grafted on the base to form a systematic product platform, which is expected to realize the transformation from project system to product system in part of the business model. The company's information professional plate is mainly implemented by the subsidiary Jiangsu Map Information Technology Co., Ltd., closely following the development hotspots and trends of digital economy, new infrastructure, Internet + and Smart +, and constructs "GIS data + information service".

Investment suggestion: the company is the leader in the field of domestic surveying and mapping, constantly expanding the market based on its own advantages, sufficient orders on hand; at the same time, pay close attention to data elements, urban lifeline and other important business, is expected to open long-term development space.

It is estimated that the net profit of homing from 2023 to 2025 will be 0.84 billion yuan, respectively, and the corresponding PE will be 34X, 25X and 19X respectively, maintaining the "recommended" rating.

Risk tips: the risk of increased competition in the industry; new business development is not as expected; the release of industry demand is not as fast as expected