Event: the company released its three-quarter report in 2023, saying that in the first three quarters of 2023, the company realized operating income of 3.123 billion yuan, up 15.36 percent over the same period last year; realized net profit of 249 million yuan, up 32.08 percent over the same period last year; and realized net profit of 234 million yuan after deducting non-recurrent gains and losses, an increase of 36.40 percent over the same period last year. Of these, 2023Q3 achieved revenue of 1.1 billion yuan, an increase of 12.4% over the same period last year, a net profit of 99 million yuan, an increase of 18.25% over the same period last year, and a net profit of 95 million yuan, an increase of 21.0%. The company's revenue and profit grew steadily, and the profit growth rate was significantly higher than the revenue growth rate.
The company's business structure and product structure continued to be optimized, and the software product line and solution product line grew the fastest in the first three quarters, up 25.82% from the same period last year, accounting for about 22% of revenue. In the first three quarters, the revenue of the information technology services sector reached 2.047 billion yuan, an increase of 20.46 percent over the same period last year, and revenue in the third quarter alone reached 740 million yuan, an increase of 18.5 percent over the same period last year. Among them, the revenue of the software and digital transformation service product line reached 1.243 billion yuan, an increase of 20.28% over the same period last year; the company adhered to the product strategy, continued to vigorously develop software products and solutions, and created a second growth curve. The revenue of the product line of software products and solutions reached 681 million yuan, an increase of 25.82% over the same period last year. The revenue of the business process outsourcing sector reached 1.075 billion yuan, an increase of 6.74% over the same period last year. We believe that it is due to the pressure on customer service and digital product lines. This sector is expected to return to growth with the recovery of residents' willingness to consume. The company's information technology services and business process outsourcing two major business sectors coordinated development, deep integration, a high degree of customer consistency, forming a relatively complete service supply chain.
Financial IT continues to have a high demeanor, and the company maintains a high level of R & D innovation and fine internal management.
The wave of digital transformation of banks is in the ascendant, the construction of financial information innovation has been comprehensively accelerated under the guidance of policies, and a number of banks have made public bidding for large amounts of credit innovation. In this context, the company adheres to the line of R & D-driven innovation and innovation-driven growth. In the first three quarters, the total R & D investment was 300 million yuan, an increase of 21.54% over the same period last year, and the R & D expenditure rate increased to 9.60% from 9.12% in the same period last year. The company developed the enterprise digital management system (EDM system) to improve the management efficiency of the company. The management expense rate and sales expense rate in the first half of the year were 3.25% and 1.60% respectively, maintaining a downward trend.
Profit forecast: the company verifies the sustainability of growth again with sound and excellent revenue and profits, and the company is expected to fully benefit from the digital transformation of banks and superimposed financial innovation in the future. It is estimated that the company's revenue in 23-25 years is 43.98 million yuan, and the net profit is 3.68 million yuan and 582 million yuan. Maintain a "buy" rating.
Risk hint: the macroeconomic recovery is not as expected; the progress of financial innovation is not as expected, and the bank information investment is not as expected.