What happened: the company released its three-quarter report in 2023, with revenue of 3.33 billion yuan in the first three quarters, an increase of 34.19% over the same period last year, and a net profit of 5.142 million yuan, down 72.58% from the same period last year, deducting the non-return net profit of-35.445 million yuan, down 484.83% from the same period last year.

Our comments are as follows:

The volume of cloud SMS business is under pressure. Revenue from 5G rich media information and international business increased by 34.19% compared with the same period last year, mainly due to the increase in the scale of sales business, of which 5G rich media news revenue increased by 97.64% year-on-year. International cloud communications business revenue increased by 241.64% compared with the same period last year. The net profit of homing decreased by 72.58%, mainly due to: 1) due to macroeconomic trends and current policies, the business volume of cloud SMS messages, especially service SMS messages, decreased compared with the same period last year; 2) in order to successfully complete the recruitment of 5G letter reading, the company took the initiative to control the related traffic, and the business volume decreased, and the subsequent related traffic will be sent by 5G email reading.

Layout AI application field, combined with its own advantages of enabling business development company as the leader of 5G rich media messaging business, based on NLP, combined with cloud graphics, voice recognition and other technologies, to create an one-stop, intelligent 5G messaging convenient service with chatbot as the carrier, with complete technical capabilities, independent intellectual property rights, and intelligent robot application scenarios based on enterprise customer needs and individual user interaction habits. In the aspect of chatbot robot, compared with the hot ChatGPT abroad, it is only the difference of technical implementation scheme, and the company also studies the modular integration method at the same time, which can realize the rapid import of customers' existing robot business and realize resource sharing. The company's AIM message provides customers with strong display and tracking capabilities of thousands of people and thousands of people. Customers can realize personalized scene marketing and service through their own data mining, which is a natural AI application entrance for customers in the field of service marketing. At the same time, Mengwang has created and launched a customer-side privatized data and AI platform, based on which customers can quickly connect their internal applications, achieve data mining, customer portraits, and accurately distribute a package of business upgrades. At present, the company has signed a business cooperation framework agreement with Huawei Yunpan ancient model, and the company combines Pangu model to create "AI+5G message", further explore the potential of the combination of message service scenarios, and create an intelligent message service solution for customers.

The development of the 5G news industry continues to advance, and the company's competitive advantage is expected to be significant in the future. On July 19, the Ministry of Industry and Information Technology publicly solicited opinions on the notice on strengthening end-to-end network cooperation to assist the development of 5G news scale (draft for soliciting opinions). Among them, it is pointed out that mobile phone manufacturers have completed the planned 5G mobile phone system design and function upgrade in accordance with 5G message related industry standards and network access detection standards. After the end of the transition period, 5G mobile phones newly applied for network access permits by mobile phone manufacturers are required to support 5G messages, accompanied by relevant network access detection reports. For 5G mobile phone models that have applied for access to the network before the end of the transition period, qualified mobile phone manufacturers are encouraged to implement 5G message function support through product system upgrades. The company's cloud communication service business has formed a core competitive advantage in terms of technical advantages, customer resources, operator channels and so on. As early as 2018, Meng.com began to lay out video messages, and Mengwang was one of the first companies in the industry to launch commercial video messaging operations. In terms of industry solutions, after nearly five years of deep ploughing, the company has formed a large-scale template accumulation, video messages have covered banks, securities, funds, cars, makeup, clothing, catering, film and television, tourism, aviation, games and other industry application scenarios In terms of customer resources, the company has always adhered to the customer-centered concept. Over the past 20 years, the company has completed the market layout of emerging important industries and customers, such as finance, the Internet, government affairs, public utilities and consumer goods. And establish and maintain close cooperative relations with major customers in the industry In terms of cooperation among terminal manufacturers, in recent years, the company has successively established cooperative relations with well-known terminal manufacturers at home and abroad, such as Huawei, XIAOMI, oppo, vivo, Samsung, Meizu, ZTE and so on, accumulating good advantages for upgrading terminal native basic message services. Based on the core technologies accumulated in the field of communications and terminal services, the company has cooperated with Huawei, XIAOMI, OPPO and VIVO to support 800 million terminal coverage and online operations, forming an exploration and layout with many upstream and downstream enterprises.

Profit forecast and investment advice:

As a leading cloud communication service provider in China, the company is not only bigger and stronger in the field of enterprise short messages, but also follows the pace of 5G network construction, laying out 5G messages, cloud communication business covers many fields. With the large-scale promotion of 5G news, Mengwang can quickly transform and upgrade customer demand, relying on its strong technical research and development capabilities and service capabilities, which is conducive to medium-and long-term market expansion. In view of the pressure on the company by the volume of cloud communications business this year, it is estimated that the company's net profit for 23-25 years will be 1.0exp 4.9 / 700 million yuan (the original value for 23 years is 210 million yuan), and maintain the "overweight" rating.

Risk tips: the development of 5G news is less than expected, the risk of policy change of operators, the intensification of market competition, the risk of impairment of goodwill, etc.