Amex announces three quarterly reports for 2023. In the first three quarters of 2023, the company achieved revenue of 5.744 billion yuan, an increase of 20.10% over the same period last year, and a net profit of 753 million yuan, an increase of 12.77% over the same period last year. In the third quarter of 2023, the company achieved revenue of 2.107 billion yuan, an increase of 24.80% over the same period last year, and a net profit of 279 million yuan, an increase of 9.49% over the same period last year. Thanks to the expansion of financial equipment business in overseas markets and the rapid development in the field of digital intelligence, the company's revenue growth exceeded expectations. We continue to be optimistic about the company's long-term layout in the fields of financial innovation, digital RMB and data trading, and the related business is expected to gain growth opportunities in the context of the rapid development of the digital economy in the future. We maintain the company's 2023-2025 EPS forecast of 0.40 pounds 0.45 yuan 0.49 yuan, maintain the target price of 16 yuan, maintain the "buy" rating.

Revenue growth exceeded expectations, reducing costs and increasing efficiency continued. In the first three quarters of 2023, the company achieved revenue of 5.744 billion yuan, an increase of 20.10% over the same period last year, and a net profit of 753 million yuan, an increase of 12.77% over the same period last year. In the third quarter of 2023, the company achieved revenue of 2.107 billion yuan, an increase of 24.80% over the same period last year, mainly due to the steady development of the company's business; gross profit margin was 34.49%, down 5.29pcts from the same period last year; sales / management / R & D / financial expense rates were 6.98%, 5.98%, 9.12%, 2.05%, respectively, and 2.58/-0.14/-2.1/+1.56pcts continued to reduce costs and increase efficiency. The net profit of returning to the mother was 279 million yuan, an increase of 9.49% over the same period last year. The two major businesses of the company's financial technology and urban intelligence are running well, and their performance continues to grow steadily.

Continue to win the bid order, lay the foundation for the company's performance release. According to the company announcement: 1) in the field of urban intelligence, the company won the bid for the intelligent city construction project in Conghua District of Guangzhou City, with a bid amount of 447 million yuan. the project covers 26 construction contents, such as comprehensive management of smart city, operation of smart city, Xinchuangyun, urban information security, etc., which marks a new breakthrough in the new digital infrastructure project in the whole city. 2) in the field of financial technology, the company's American Express International has made breakthroughs in the markets of Bangladesh, Malaysia and Thailand, signing strategic cooperation agreements with local partners such as financial technology, network transformation and financial intelligent equipment, and obtaining bulk orders. Relying on its core technical capabilities in artificial intelligence, financial technology and other fields, the company continues to obtain market orders, laying the foundation for the company's follow-up performance release.

Strategically shrink non-core business and promote the business development of subsidiaries. 1) the company strips off its non-core business and focuses on the main line of business. According to the company announcement, the company transferred 72% of the equity of the Digital Financial Innovation Research Institute, and the company no longer held the equity of the Digital Financial Innovation Research Institute after the transfer. Huitong Jinke, a holding subsidiary, transferred 51% of its equity. Huitong Jinke's main business is bank call center outsourcing services, which is less related to SARFT in areas such as artificial intelligence, and the company no longer holds Huitong Jinke equity after the transfer. 2) promote the business development of subsidiaries and help them move towards the capital market. According to the company announcement, American Express, a subsidiary of American Radio and Television Express, intelligently completed the second round of financing of 220 million yuan, with a post-investment valuation of 1.12 billion yuan; the holding company reached 9 million yuan in the second round of financing, with a post-investment valuation of 268 million yuan; and subsidiary Pingyun completed the shareholding system transformation and made further progress to the capital market.

Risk factors: the risk of reduced demand due to macroeconomic pressure; the risk of financial innovation demand and progress falling short of expectations; the risk of geopolitical factors leading to lower-than-expected overseas revenue; the risk that the promotion of digital RMB is not as expected; the risk that data trading is not as good as expected.

Earnings forecast, valuation and rating: the company's performance has grown steadily and its revenue performance has exceeded expectations. We are optimistic that the company, as a participant in the construction of digital industry, will continue to empower the development of financial innovation, data trading, smart city and other fields with artificial intelligence and big data as the technological base. related businesses are expected to get growth opportunities in the context of the rapid development of the digital economy in the future. We maintain the company's 2023 EPS 2024Universe 2025 forecast of 0.40max 0.45max 0.49, the current share price corresponding to 30-26-24 times PE, reference to comparable companies Changliang Technology, Yuxin Technology 2023 average PE valuation 46 times (CITIC research department forecast), considering the company's minority shareholders' profit and loss dilution of profits, we give Radio and Television Express 2023 40 times PE, maintain the target price of 16 yuan, maintain the "buy" rating.