With the rapid growth of revenue, the company had a smooth exhibition in the third quarter. When the company released its results for the third quarter of 2023, 2023Q1-Q3 achieved revenue of 1.121 billion yuan, an increase of 32.76% over the same period last year, a net profit of 44 million yuan, an increase of 149.05% over the same period last year, and a deduction of 27 million yuan for non-net profit, an increase of 403.41% over the same period last year. In 2023, Q3 achieved a revenue of 414 million yuan in the single quarter, an increase of 48.98 percent over the same period last year, an increase of 6.09 percent over the previous year, and a net profit of 16 million yuan, an increase of 96.09 percent over the same period last year, a decrease of 18.03 percent over the previous quarter, and a net profit of 6.96 million yuan. The company gives full play to its competitive advantages in the pan-financial field and realizes the rapid growth of revenue and profits.
Gross profit margin has declined and investment in research and development has continued to increase. Q3 single-quarter gross profit margin was 23.70%, down 2.22pct from the same period last year and 7.88pct from the previous year. We judge that the main reason for the decline in the company's gross profit margin is the increase in the elements of advanced technologies such as artificial intelligence in the new project, resulting in an increase in the scale and seniority level of personnel invested in the project. The net operating cash flow of the company in a single quarter was 26 million yuan, down 45.12% from the same period last year, mainly due to the increase in the salary paid by the company's Q3. From the point of view of expenses, the sales / management / R & D expenses of Q3 in a single quarter were RMB 0.20 million, respectively, 18.26%, 33.25%, 73.52%, and 4.72%, 5.47%, 10.92% respectively. The year-on-year change rate of expense rate is-3.88pct/-0.65pct/+1.54pct, and the company has mainly increased its R & D investment. Q3 invested 51 million yuan (+ 63.96%) in R & D in a single quarter, and the proportion of R & D investment in revenue increased by 1.12pct to 12.26% compared with the same period last year. The main direction of the company's R & D investment is the landing of artificial intelligence large model applications in key industries.
AI products have officially entered the promotion period. At the end of June, the company launched the omni-directional artificial intelligence capability connection platform Xinzhi knowledge platform, based on which we continue to launch innovative AI tools products for insurance, automotive and other fields, in which the insurance product comparison tool Biwi has iterated 1.0 and 2.0 versions, and Biwi 2.0 has built a complete plug-in system based on the ability of large language model. Through the ability of the large model to identify the user intention, disassemble multiple robot plug-ins that intend to call the background, execute the whole user intention process, and complete the user purchase solution from online products, product comparative analysis, to the final purchase process. The company is actively carrying out AI product promotion activities, carrying out free trials, registration benefits and other activities. As the product polishing is becoming more and more mature, word-of-mouth among professional users is gradually established. Relying on excellent product strength, the company is expected to become the leader in the AI application market.
[investment advice]
The company is a leader in the insurance IT industry, with years of deep cultivation in the field of insurance and banking IT, providing channel solutions for the company and forming a rich accumulation of data resources. relying on its own precipitation, the company deeply combines AI technology with business capabilities to gradually form product and platform results and create the company's second growth curve. We estimate that the company's operating income in 2023, 2024, and 2025 will be 1,672, 228,690 million yuan, respectively, and the estimated net profit of homing will be 1.088, 1.62, and 0.89 million, respectively, respectively; the EPS will be 0.45, 0.68; and the corresponding PE will be as much as 37-25-19, maintaining the "overweight" rating.
[risk Tip]
The risk of AI product promotion is not as expected
Industry competition aggravates risks
The rhythm of the project is not as good as the expected risk