With the expansion of distribution channels and the restoration of high-speed traffic, the company's intelligent traffic electronic toll collection business has achieved relatively high-speed growth, and new applications such as ETC+ vehicle-road coordination have further opened up the business space and expanded the development and application boundaries of traffic data elements. High-speed brain, AI video analysis cloud control platform, free cloud fees and other new products continue to transform to revenue, intelligent transportation cloud application stars sea. Maintain the "highly recommended" investment rating.
Event: the company released its Triple report for 2023. In the first three quarters of 2023, the company realized operating income of 452 million yuan, YoY + 24.82%; net profit of 155 million yuan, YoY + 45.39%; and deduction of non-net profit of 146 million yuan, YoY + 50.19%. Among them, realized operating income of 174 million yuan, YoY + 20.62%; realized return net profit of 57 million yuan, YoY + 49.01%; realized deduction of non-net profit of 57 million yuan, YoY + 48.47%.
ETC business solid support performance growth, smart transportation cloud waiting to bloom. In the single quarter of 23Q3, the company's intelligent transportation electronic toll collection / intelligent transportation operation management system / intelligent transportation derivative business revenue was 10988.85 / 6033.59 / 3.9719 million yuan, an increase of 26.67% / 11.60% / 10.29% over the same period last year.
On the ETC business side, since the beginning of this year, the company has continued to optimize ETC product system, vigorously developed social cooperation agents and Internet cooperation channels, and the circulation 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, bringing a significant increase in electronic toll service revenue. In terms of intelligent transportation operation and management system business, the company's new intelligent transport cloud products such as high-speed brain, AI video analysis cloud control and free flow cloud charging solution are all being continuously promoted, and it is expected that the new increase in revenue brought to the company by the new product expansion will be reflected on the report side in the coming quarter. In addition, the company will further strengthen the market expansion of supply chain collaborative services and drainage business this year, and develop intelligent transportation derivative business, which still has broad space and is expected to account for a relatively rapid growth in the company's revenue share in the future.
New applications such as ETC+ vehicle-road collaboration further open up the business space and expand the boundaries of the development and application of traffic data elements. Besides the steady growth of ETC business along with new car ownership and second-hand car transactions, the construction of vehicle-road coordination system based on ETC was mentioned in the "Optimization and upgrade Engineering Plan of Expressway Network Toll system" (draft for soliciting opinions) issued by the Ministry of Transport in 2022 and in "Traffic Watchman" (TraffiCatcher), an intelligent solution for expressway service based on ETC, issued by the Road Network Center of the Ministry of Transport. 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.
Maintain the "highly recommended" investment rating. With the expansion of distribution channels and the restoration of high-speed traffic, the company's intelligent traffic electronic toll collection business has achieved relatively high-speed growth, and new applications such as ETC+ vehicle-road coordination have further opened up the business space and expanded the development and application boundaries of traffic data elements. High-speed brain, AI video analysis cloud control platform, free cloud fees and other new products continue to transform to revenue. Intelligent transportation derivative business to maintain rapid development, the overall business space is broad. It is estimated that the company's net profit in 2023-2025 is 2.22 billion yuan, corresponding to 2023-2025 PE in 40-30-23. 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.