The company released its three-quarter report of 2023, with operating income of 1.65 billion yuan, + 12.6% year-on-year, net loss of 250 million yuan, + 40.8%, and non-net loss of 260 million yuan, + 42.4% over the same period last year. In terms of Q3 alone, the company achieved an operating income of 640 million yuan, + 10.3% compared with the same period last year; a net loss of 36.22 million yuan, compared with a year-on-year loss of 210 million yuan; deducted a non-net loss of 41.28 million yuan, and a loss of 220 million yuan compared with the same period last year. The continued growth in revenue is due to the rapid growth of industry customers, including local government industry revenue year-on-year + 43.9%, operator industry + 24.7% year-on-year, and education industry + 16.0%.
The company's consolidated gross profit margin was 62.31% in the first three quarters of 2023, an increase of 1.08pct over the first three quarters of 2022. From the perspective of Q3 alone, the gross profit margin has increased to 73.03%, mainly due to the increase in the proportion of high gross profit business in Q3, which continues to increase 8.5pct on the basis of Q2 growth.
The company's personnel structure has been continuously optimized, the improvement of quality and efficiency has been achieved, and the per capita income has been significantly improved. In the first three quarters of 2023, the company's sales expenses were 640 million yuan, + 10% compared with the same period last year, and the sales expense rate was 39.0% (- 0.9pct), thanks to the effective implementation of the marketing side company's industry ploughing, city sinking and channel expansion strategy; management expenses were 210 million yuan,-9.8% year-on-year, and management expense rate was 13.0% (- 3.2pct). The R & D cost is 590 million yuan,-5.9% compared with the same period last year, and the R & D expense rate is 35.5% (- 7.0pct), thanks to the fact that the R & D side companies have completed the pre-investment and comprehensive layout in cloud computing, cloud security, Xinchuang security, data security, industrial Internet security, vehicle networking security and other directions.
Profit forecast and investment advice. It is estimated that the EPS of the company from 2023 to 2025 will be 0.36 EPS 0.62 yuan per share, respectively. If the company is given 35 times PE in 2023, the reasonable value of the company will be about 12.62 yuan per share, maintaining the "buy" rating.
Risk hint. The development of emerging security business is not as expected; the recovery of downstream customer demand is not as expected; and the landing of industry policy is not as expected.