The three-quarter report met expectations and maintained the “buy” rating
The company's revenue continued to grow rapidly in the third quarter, and the performance was in line with expectations. The company has already introduced commercial product lines for some customers, and is expected to receive more batch sales orders in the future; new Aipuyang.NET products are being actively promoted, which is expected to open up broad room for growth in the future. Without considering the performance and impact of the acquisition target, we maintain our profit forecast unchanged. We expect net profit from 2023-2025 to be 1.02, 1.51, and 221 million yuan, EPS of 1.18, 1.74, and 2.54 yuan. The current stock price corresponding to PE is 46.6, 31.5, and 21.6 times, maintaining the “buy” rating.
Event: The company released its 2023 three-quarter report. The performance was in line with expectations. In the first three quarters of 2023, the company achieved revenue of 233 million yuan, an increase of 28.05% over the previous year, net profit of 54 million yuan, an increase of 71.35% over the previous year, and net profit deducted from non-return mother of 0.5 billion yuan, a year-on-year decrease of 59.75%.
In the third quarter alone, the company achieved revenue of 98 million yuan, a year-on-year increase of 28.87%, net profit of 0.03, a year-on-year decrease of 80.21%, and net profit after deducting non-return mother of 100 million yuan, a year-on-year decrease of 93.27%.
After excluding the impact of stock payments, the company's profit continued to grow at a high level
In the first three quarters, the company's revenue maintained relatively rapid growth. The increase in profit was mainly due to the company's disposal of part of Zhuoyi Culture's shares and confirmation of investment income from equity transfers. The decline in non-profit deductions was mainly due to the company's employee equity incentive plan confirmed about 18 million yuan more share payment expenses than in the same period in 2022. Excluding the impact of share payment expenses, net profit increased significantly year-on-year, and performance was in line with expectations.
Firmware customers continue to break through, and the new Aipuyang.NET product opens up room for growth (1) The country attaches great importance to autonomy and control, and the importance of domestic firmware is highlighted. The company has fully mastered multi-architecture BIOS technologies such as X86, ARM, MIPS, RISC-V, and BMC firmware development technology. BIOS firmware products have been adapted to mainstream domestic chips such as Hisilicon, Haiguang, Feiteng, Megaxin, Longxin, and Shenwei. In recent years, with the company's active expansion, some customers have introduced commercialized product lines, and it is expected that more batch sales orders will be obtained in the future. (2) In the third quarter, Apyang, which was acquired by the company, completed the merger. According to the company announcement, the new product DevMagic Studio, which is currently being developed.NET, is expected to release a new version in the fourth quarter. It plans to develop a free version for the community to implement model-driven low-code development with basic functions. Later, a fee-based professional version will be launched on this basis, which will be promoted simultaneously at home and abroad. According to the company announcement, there are more than 6 million.NET (C #）开发人员，市场空间广阔，有望为公司打开广阔成长空间。) worldwide
Risk warning: Localization process falls short of expectations; market competition intensifies; core technology cannot meet market demand.