Event: the company released its three-quarter report in 2023. In the first three quarters of 2023, the company achieved operating income of 179 million yuan, down 41.34% from the same period last year. The net profit returned to its mother was-15 million yuan, an increase of 76.83% over the same period last year. Among them, Q3 realized operating income of 77 million yuan, down 26.40% from the same period last year; the net profit returned to its mother was 95 million yuan, an increase of 151.07% over the same period last year, with a significant increase in profit growth compared with the same period last year.
Embracing the strategic transformation of AI, the performance has achieved initial results. The company's AI business has contributed to its operating performance. In the first three quarters of 2023, the company's AIGC industry camp and AI industry model development and other AI services realized revenue of 581800 yuan, with a gross profit margin of 84.07%. During the reporting period, a large model of Dark Horse Tianqi Co. has been tested, and the purchase of equipment leased by the Dark Horse Intelligence Center has laid a solid foundation for the improvement of future performance.
The painful period of business transformation is over, and AI helps to boost gross profit margin. The company continues to shrink the fiscal and tax business with low gross margin in an all-round way, and the overall revenue continues to be under pressure. Q3 on the profit side has turned a loss into a profit in a single quarter. Benefiting from the improvement of the energy efficiency of the company's traditional business operations by the strategic layout of AI, the company's overall gross profit margin surpassed 5pct by 50.49% from January to September compared with H1.
Investment suggestion: as a well-known service and incubator of small and medium-sized entrepreneurial enterprises in the industry, the company comprehensively embraces AI through strategic transformation, takes the initiative to shrink its low gross margin business, and its overall profitability has been significantly improved. We are optimistic that the company will continue to enrich the layout in the field of AI, and create an AI ecology of computing power, algorithms and services to better empower small and medium-sized enterprises in various industries. We are optimistic about the development of the company and predict that the company will achieve revenue of 512 million yuan, 728 million yuan and 996 million yuan in 2023-2025; net profit of 16 million yuan, 39 million yuan and 110 million yuan; and EPS 0.09,0.23,0.66 grade PE 358X, 144X, 51X, maintaining the "overweight" rating.
Risk hint: the risk that the contract can not be fulfilled on time; the industry competition intensifies; the technology transformation is not as expected; the large model technology development is not as expected; the industry policy changes.