Core ideas:
Event: the company released its quarterly report for 2023: in the first three quarters of 2023, the company achieved operating income of 1.357 billion yuan, up 3.53% from the same period last year; the net profit belonging to shareholders of listed companies was 13.568 million yuan, up 150.06% from the same period last year; and 2.7616 million yuan was deducted from non-homing net profit, up 108.54% from the same period last year. Among them, the company's operating income in the third quarter was 355 million yuan, down 22.67% from the same period last year; the net profit belonging to shareholders of listed companies was 1.0618 million yuan, up 109.62% from the same period last year; and the non-return net profit was 1.7708 million yuan, up 114.23% from the same period last year.
Build artificial intelligence computing service platform and explore new computing operation mode: on October 25, 2023, the company's Shanxi data flow Ecological Park signed a cooperation agreement with Shanxi data Technology Co., Ltd. and Shanxi Digital Industry Association. Relying on the scale of artificial intelligence computing power of the National Advanced Computing Taiyuan Center, the three parties will make full use of their respective advantages to jointly create an artificial intelligence computing power service platform. The platform co-ordinates high-performance computing resources, provides reliable public computing resources, and promotes the intelligent development of the industry. Through the computing power service platform, the company further improves the "data-algorithm-computing power" advantage chain, laying the foundation for the subsequent development of business by giving full play to the advantages of massive data elements and model algorithms.
Sit on the digital head IP, or create new performance growth points: the company has created the country's first national-style virtual digital human "Tianqi", with more than 5 million fans, 400 million video views, nearly 30 million Douyin points, and 1 billion related topics. The number of business orders related to digital people is also increasing rapidly, and the ability to generate income has been continuously strengthened. it has successively endorsed "Qiannu Ghost" mobile games, Jiyue Motor, Zhou Dasheng and so on, which is expected to become a new performance growth point of the company.
Investment advice: after the business restructuring, the core traffic business growth is steady, the "data-algorithm-computing power" advantage chain continues to improve, while digital people are expected to create new performance growth. We estimate that the company's net profit attributable to shareholders of listed companies from 2023 to 2025 will reach 0.48 trillion yuan, up 116.89%, 104.49% and 57.78%, corresponding to EPS 0.03, 0.06, 0.09 and 170x/83x/53x respectively, maintaining the "recommended" rating.
Risk tips: digital human business is less than expected risk, industry regulatory policy risk, market competition intensifies risk, company cost control risk.