The survey and mapping stock released the third quarterly report of 2023: the company's 2023Q1-Q3 realized operating income of 373 million yuan, down 2.75% from the same period last year; realized net profit of 18 million yuan, down 39.45% from the same period last year; and realized net profit of 13 million yuan after deducting non-return, a decrease of 46.53% over the same period last year. Of this total, Q3 realized operating income of 134 million yuan, a decrease of 14.85% over the same period last year, a net profit of 6 million yuan, an increase of 38.35% over the same period last year, and a net profit of 5 million yuan, up 87.08% over the same period last year.

The company's 2023Q1-Q3 realized operating income of 373 million yuan, a decrease of 2.75% over the same period last year. From a quarterly point of view, the company's 2023Q1, Q2 and Q3 achieved operating income of 95 million yuan, 144 million yuan and 134 million yuan respectively, with year-on-year changes of-2.47%, + 11.81% and-14.85%, respectively. With the acceleration of China's urban digital transformation and the comprehensive launch of the urban infrastructure lifeline security project, the demand for the development of surveying and mapping geographic information to "global, holographic, full-space, multi-dimensional, high-frequency" is expected to be strong, which is conducive to the long-term volume of the company's orders. drive performance improvement.

In 2023, the company's Q1-Q3 achieved a comprehensive gross profit margin of 34.28%, down 2.35 pct from the same period last year; the net profit rate was 4.80%, down 3.10 pct, down 103 million yuan, accounting for 27.61% of the revenue end, and an increase of 2.07pct over the same period last year. The company's gross profit margin and net profit margin have declined, and we judge that it is mainly due to increased competition in the industry and rising labor costs.

The net operating cash flow per share of the company's 2023Q1-Q3 is-0.62 yuan, which is 0.09 yuan more than the same period last year.

Future highlights: 1) the construction of smart cities has been accelerated, the lifeline security project of urban infrastructure has been vigorously promoted, and the company is in the forefront of the top 100 enterprises in China's geographic information industry, and is expected to benefit deeply from the increase in industry demand. From a regional point of view, the company has a greater influence in Jiangsu Province, and the relevant cooperation continues to deepen, bringing a large potential business increment for the company. 2) data resources will be included in the table soon, the company's rich data accumulation is expected to further reflect the value, and the balance sheet will be improved. 3) the company announces that it intends to buy back some of the shares to be used for the implementation of employee stock ownership plans or equity incentives, which is conducive to binding the company's performance and the interests of core employees and enhancing team cohesion.

Profit forecast and rating: covered for the first time, the company's net profit from 2023 to 2025 is expected to be 78 million yuan, 97 million yuan and 117 million yuan respectively, and the closing price on October 27 is 33.4,26.8,22.3 times respectively corresponding to PE.

Risk tips: industry demand is lower than expected and competition intensifies; project progress slows down; market regional expansion and localization service network construction slows down; project payback is lower than expected.