occurrences
The company released the “Report for the Third Quarter of 2023” after closing on October 26, 2023.
Comment:
Operating income achieved rapid growth, and profits were released simultaneously
In the first three quarters of 2023, the company achieved operating income of 37.264 billion yuan, a year-on-year increase of 47.61%; realized net profit of 1,005 billion yuan, an increase of 47.24% over the previous year; realized net profit of 936 million yuan after deduction of net profit, an increase of 50.55% over the previous year; and net cash flow from operating activities of 50.2 million yuan. In the third quarter of 2023, the company achieved operating income of 13.631 billion yuan, an increase of 46.86% over the previous year; realized net profit of 362 million yuan, an increase of 41.77% over the previous year; and realized net profit of 369 million yuan, an increase of 55.95% over the previous year.
All main business sectors collaborate efficiently, and core competitiveness continues to improve. Since this year, the company has actively implemented the industrial Internet development strategy with “platforms, technology and data” as the core and the overall business plan for 2023, continuously improving the main business capabilities of industrial e-commerce and the service value of industrial Internet platforms, and striving to enhance the company's core competitiveness. The company's main business segments: B2B information service platform - the League of Nations resource network; B2B vertical e-commerce platform (industrial e-commerce platform) - Tuduo, Wei Duo, Bodo, Paper, Fat, Fat, Oil, Core, and Medical Devices; Digital Technology Service Platform - Guolian Cloud, which has good value interaction and collaboration advantages.
Long-term accumulation has formed member resource advantages, and customer value is expected to continue to be unleashed. Since its establishment, the company has developed members through network-wide channels and industry cooperation. Currently, the League of Nations Resources Network has become an information service platform with strong influence in the industry in terms of professional data, number of customers, number of visits, number of registered paid members, and online and offline service capabilities; various e-commerce businesses have also rapidly grown into leading industrial Internet platforms in the vertical industry. The membership base accumulated over a long period of time is a gold mine that the company will continue to explore in the future. Through a business model that is mainly online, supplemented by offline, and integrated online and offline, the company can serve members through various channels. At the same time, the various data accumulated by the membership platform also helps the company understand the industry and supports the company's online commodity trading, business information services, and digital technology services sectors.
Profit forecasting and investment advice
The company is positioned as a B2B e-commerce and industrial Internet platform, and continues to gain strength in China's multi-trillion B2B market. Referring to the business situation in the first three quarters, the company's 2023-2025 operating income forecast was adjusted to 602.16, 879.24, and 124.699 billion yuan; adjusted net profit forecasts to 16.50, 23.25, and 3.24 billion yuan; and EPS was 2.28, 3.22, and 4.44 yuan/share, corresponding to PE 16.73, 11.87, and 8.61 times. Maintain a “buy” rating considering the prosperity of the industry and the company's future growth.
Risk warning
Risks arising from the macroeconomic cycle; policy risk; Internet system risk; risk of members posting false or infringing information; risk arising from the business model upgrade process; risk of e-commerce operating system security; risk of Internet technology advancement; risk of high prepaid accounts; profit fluctuations that may be caused by fluctuations in major commodity prices in the company's online commodity trading business.