occurrences
The company released the “Report for the Third Quarter of 2023” after closing on October 26, 2023.
Comment:
Operating income increased steadily in the first three quarters, and profit levels declined in the short term. In the first three quarters of 2023, the company achieved operating income of 131 million yuan, an increase of 15.31% over the previous year; realized net profit of 4.3451 million yuan, a year-on-year decrease of 29.60%; and realized net profit of net income minus 5.8626 million yuan, a year-on-year decrease of 326.75%. In the third quarter of 2023, the company achieved operating income of 50 million yuan, a year-on-year decrease of 13.23%; realized net profit of 4.6753 million yuan, a year-on-year decrease of 64.41%; and realized net profit of deduction of 2,461 million yuan, a year-on-year decrease of 80.74%. The decline in profit in the first three quarters was mainly due to the company's efforts to improve market competitiveness, increase R&D investment, and at the same time strengthen market expansion efforts, which led to an increase in the number of R&D personnel and the number of marketing personnel, which led to an increase in various expenses.
Continue to increase investment in R&D to maintain technological leadership
Since its establishment, the company has always focused on software research and development for data replication, and attached great importance to the accumulation and investment of technology research and development. From the dynamic file byte level to the database semantic level to the volume level, the company has always adhered to technological innovation, continuously expanding technological boundaries, and exploring cutting-edge technology in the industry. In the first three quarters of 2023, the company's R&D expenses reached 63.6516 million yuan, an increase of 30.28% over the previous year, accounting for 48.43% of revenue, maintaining a high proportion. As of June 30, 2023, the company has obtained 43 invention patents and 120 software copyrights. Continued R&D investment and technological innovation are key for the company to maintain its leading position in the industry. In the future, the company will continue to maintain a high level of R&D investment, continuously enrich product functions, optimize product performance, expand product application fields, and achieve greater breakthroughs in the field of data replication.
Focus on data replication technology and lay out the channel ecosystem in depth
The company's core technologies all revolve around data replication, and are committed to improving the data replication rate, refining the granularity of data replication, and ensuring strict data consistency. The core technological achievements are widely used in existing products and products under development, forming the four major product lines of “disaster recovery+backup+cloud disaster recovery+big data”. The company's main products have achieved large-scale sales within the industry, and have been recognized by many domestic securities companies and financial institutions such as banks, insurance companies, fund companies, asset management companies, etc., and are widely used in telecom operators, the Internet, energy and electricity, real estate, industrial manufacturing, etc., as well as government agencies, government agencies, education, scientific research, medical care, transportation, etc., with remarkable industrial application results. According to the company's 2023 semi-annual report, in terms of ecological cooperation, it has carried out ecological and channel cooperation with more than 500 domestic and foreign enterprises.
Profit forecasting and investment advice
The company is a basic software enterprise focusing on data replication. With the continuous promotion of policies, the company has reached a stage of high growth. Referring to the business situation in the first three quarters, the company's 2023-2025 operating income forecast was adjusted to 283, 4.24, and 618 million yuan; the net profit forecast was adjusted to 0.62, 1.10, and 173 million yuan; and EPS was 0.74, 1.32, and 2.07 yuan/share. Maintain a “buy” rating considering the prosperity of the industry and the company's future growth.
Risk warning
Risk of loss of R&D personnel and disclosure of core technology; risk of R&D decisions; risk of small business scale and high competitive pressure; risk that the company's customers from the financial industry account for a relatively high share of revenue; risk that customer budgets may be adjusted; industry risk.