公司三季度经营有所承压，单Q3 实现营业收入21.58 亿元，同比下滑2.66%，实现归母净利润1.15 亿元，同比下降8.77%。公司前三季度通信网络业务保持稳定增长，能源网络业务实现高速增长，预计主要是数字化业务影响，导致单季度经营承压。我们认为，行业数字化转型趋势有望持续，期待公司业务复苏。Incidents:
Runjian Co., Ltd. released its 2023 three-quarter report. The first three quarters achieved operating income of 6.751 billion yuan, an increase of 10.87% over the previous year, and net profit of 400 million yuan, an increase of 10.10% over the previous year.
1. The Q3 quarter was under pressure
The company's operations were under pressure in the third quarter. Q3 alone achieved operating income of 2.58 billion yuan, a year-on-year decrease of 2.66%, and net profit of 115 million yuan, a year-on-year decrease of 8.77%. The company's communication network business maintained steady growth in the first three quarters, and the energy network business achieved rapid growth. It is expected that the impact of digital business will be mainly due to the impact of digital business, which will put pressure on operations in a single quarter. We believe that the industry's digital transformation trend is expected to continue, and we look forward to the company's business recovery.
2. Gross margin remains relatively stable, and investment in R&D is increased
The company's single Q3 gross margin remained relatively stable, achieving a gross profit margin of 18.75% in a single quarter, which remained stable over the previous year. Q3 There was a significant increase in R&D expenses in a single quarter, with R&D expenses of 95.85 million in a single quarter, mainly due to the company's further increase in R&D investment, and the increase in R&D personnel remuneration and related expenses.
3. Continue to focus on computing power
① The company is based on Wuxiang Cloud Valley and is shifting its layout to computing power services. The company started computing power business. The first stage invested 200 million yuan in purchasing the industry's top computing power servers to build Runjian Co., Ltd.'s intelligent computing power center, providing 2533Pops (Int8) fixed-point computing power or 43Pflops (FP32) single-precision floating point computing power; in addition, the layout of computing power center management and maintenance provides one-stop services for the entire life cycle of computing power centers and IDC.
② In terms of data services, the company can provide customers with integrated AI models and data services, including data governance, training, tuning, algorithm toolboxes, etc.
③ In terms of AI applications, the company released a “crank ruler” platform that can generate artificial intelligence algorithms in the fields of vision, speech, and text, and empower customers to build artificial intelligence model applications in vertical fields.
4. Much progress has been made recently
The company's intelligent computing center mainly targets artificial intelligence applications that require large-scale computation and processing, and provides high-performance computing resources and algorithm support. In October, the company announced a public announcement stating that the NVIDIA NVLINK H800/NVIDIA NVLINK A800 computing power servers, the intelligent computing power center of Runjian Co., Ltd., have recently officially completed batch listing and delivery to users. The launch of high-performance computing power servers marks the official opening of the Intelligent Computing Center of Runjian Co., Ltd. Currently, the company's channels and customers have diversified, and high-performance computing power servers will be launched and put into use at an accelerated pace.
The first phase of the Runjian Intelligent Computing Center will provide customers with about 2500P computing power leasing services. In the future, there will be continuous investment according to customer needs. The Intelligent Computing Center of Runjian Co., Ltd. is built on the basis of the Wuxiang Cloud Computing Center and can carry a large computing capacity. Wuxiang Yungu is the highest-level and largest cloud computing data center in Guangxi so far. The first phase plans 6,000 cabinets, and there is a foundation for continued expansion of the company.
At the same time, the company actively embraces domestic computing power. The company has maintained a good cooperative relationship with leading domestic computing power companies. The cooperation between the two sides covers fields such as computing power, IDC, communications, digitalization, and new energy. Among them, they have collaborated on projects such as the China-ASEAN Artificial Intelligence Supercomputing Center in the field of computing power. Wuxiang Cloud Valley has also purchased some of its equipment, and the company will continue to deepen the cooperative relationship based on its original business in the future.
Profit forecast and investment advice: Due to overall operating pressure in the first three quarters, demand in the digital business industry is expected to gradually improve. Adjust the company's net profit forecast for 23-25 to 5.5/7.9/1.03 billion yuan (original value was 6.2/8.4/1.14 billion yuan), corresponding to the current PE valuation of 20/14/11 times, maintaining the “buy” rating.
Risk warning: the risk of increased competition in the industry, the risk that AI-related business will not advance as expected, the risk that orders will be converted into revenue at a pace that falls short of expectations, etc.