On October 30, 2023, the company released its third quarterly report for 2023. In the first three quarters of 2023, the company achieved a total operating income of 601 million yuan, down 5.57% from the same period last year, and a net profit of 22.8637 million yuan, down 77.96% from the same period last year. The company continues to layout AI combined with vertical industry application matrix, at the same time, the company has its own high-quality data resources are expected to benefit from the AI commercialization process, broad commercial space.
The company's performance is under short-term pressure, and the rate of expenses has increased significantly.
In the first three quarters of 2023, the company achieved a total operating income of 601 million yuan, down 5.57% from the same period last year, and a net profit of 22.8637 million yuan, down 77.96% from the same period last year. In the first three quarters, the company's gross profit margin was 60.09%, down 6.35pct from the same period last year, and the sales / R & D / management expense rate was 20.76%, 16.43%, 24.46%, respectively, an increase of 4.88/1.37/6.37pct over the same period last year.
In the single quarter of Q3 in 2023, the company achieved a total operating income of 157 million yuan, down 25.94% from the same period last year, and realized a net profit of-46.7804 million yuan, turning from profit to loss compared with the same period last year. The Q3 single-quarter sales / R & D / management expense rate was 25.14%, 19.99% and 33.85%, respectively, an increase of 12.68/4.56/14.52pct compared with the same period last year.
During the reporting period, the Tuotian public opinion model was released, and the AI+ industry application matrix continued to expand. Following the release of the Tuotian media, financial and government model on June 29, the company officially released the public opinion model on September 26, and the company's AI model made another breakthrough in the vertical industry. The public opinion model is based on the massive multi-channel data obtained by the network inspection situation awareness system, and can realize one-stop service from public opinion acquisition, content analysis, report writing to information push. The intelligent writing of public opinion report covers the fields of online letter, public security, finance, education, catering and so on; the question and answer assistant of public opinion analysis supports other functions such as public opinion question and answer, opinion extraction, public opinion analysis, research and judgment suggestions, sensitive analysis and so on.
The company has a large amount of high-quality data resources, and under the application wave of AI+ industry, the company has authoritative high-quality public data 150 billion +, covering newspaper data, Internet mainstream news data, news information client data, government portal data, authoritative third-party platform data and industry information data, etc. Recently, the company has signed contracts with a number of large model manufacturers and national laboratories to provide them with high-quality and diversified data. At the same time, on September 21, the company signed a strategic cooperation agreement with the Shanghai data Exchange, which will deepen strategic cooperation in data asset registration and listing, co-creation of data product database, data processing services and data governance services. We believe that the company is expected to benefit from the commercialization of AI and the dual catalysis of data elements to open up business space.
Profit forecast and valuation
We estimate that the company's revenue from 2023 to 2025 will be 1.544 billion yuan, an increase of 33.46%, 27.50% and 28.53%, respectively, and its net profit will reach 2.56 million, 356 and 477 million respectively, with an increase of 100.71%, 39.05% and 33.74%, corresponding to EPS 0.32, 0.45 and 0.60 respectively. Maintain a "buy" rating.
Risk hint
The risk brought by the intensification of market competition; the risk that the order growth or landing is not as expected; the risk that the implementation and commercial promotion of AIGC-related technology is not as expected.