Acceptance was less than expected short-term performance pressure, maintain "buy" rating company 23 Q1-Q3 income 1.378 billion yuan, same as 13.8%; return mother net profit-89 million yuan, same decrease 149.6%; deducting non-mother net profit-185 million yuan, same minus 446.9% X 23Q3 single quarter income 466 million yuan, same minus 22.8%; homing net profit-4 million yuan, same minus 104.7% Deducting the non-return net profit-33 million yuan, with a reduction of 206.5%. The main reasons for the decline in performance are as follows: 1) the progress of project acceptance is not up to expectations, and the operating income is declining; 2) the increase in market expansion costs. It is estimated that 23-25 EPS 1.47 pound 2.19 yuan. Segment valuation, 23e digital construction income 310 million yuan, comparable company average 23e 6.2xPS (wind), give 6.2xPS 28.9xPE 23e other business net profit 500 million yuan, comparable company average 23e 28.9xPE (Wind), 2023e 28.9xPE, target price 49.56 yuan, maintain "buy".

Profit is affected by acceptance progress and cost input, pay attention to downstream demand repair 23Q1-Q3 due to the government bid opening and acceptance progress is not up to expectations, revenue declined compared with the same period last year. Cost side:

The 23Q1-Q3 sales expense rate was 37.4%, up 6.8pct from the same period last year; the management expense rate was 10.0%, up 1.8pct from the same period last year; and the R & D expense rate was 27.4%, up 2.1pct from the same period last year. Operating net cash flow-357 million yuan (the same period last year-372 million yuan). The continuous development of the company's business throughout the country has led to an increase in labor, travel, conference services and other costs. Q4 is the peak period of acceptance for government customers and enterprises and institutions, and it is also the main period for revenue recognition, which is expected to be carried out step by step. In the long run, the company benefits from the accelerated construction of digital China, and the downstream demand is expected to be repaired; at the same time, with the advantages of product technology, the company is expected to actively explore market and industrial opportunities in terms of data elements, and further open up new areas and growth space.

Continuous investment in emerging technologies and continuous iterative upgrading of products

The company creates a sustainable operation model in the field of wisdom recruitment, provides bidding procurement services to tenderers, and provides bidders / suppliers with various tools and software, information resources services and online and offline technical support services.

In the field of intelligent government, key investments in meta-universe, artificial intelligence, big data, PaaS and other fields have been completed to upgrade the architecture of a network-managed product, making it highly customizable and scalable, and helping customers to respond quickly to the innovative business needs of urban governance. In the field of digital architecture, the company constantly improves the application of CIM+ urban construction and management related topics, realizes the end-cloud integration transformation of cost software, and realizes the closed-loop accumulation and application of data.

With the continuous promotion of the data factor policy, the company may benefit from the development of the data factor market since 2023, China has introduced a number of measures in terms of data elements and set up the National big data Bureau; at the same time, a number of ministries and commissions and local provinces have also issued relevant regulations and guidance on the data factor industry, and a number of policies show the important position of data resource system construction in the national development strategy. The company continues to focus on big data governance and intelligent analysis, domestic BIM, intelligent equipment development and operation and maintenance, application rapid development support and other core technologies for research and development, is expected to rely on the technological advantages of its own products, benefit from the development of the data factor market.

Risk tips: macroeconomic fluctuations; operating income growth is not as expected.