Revenue grew steadily in the third quarter. The company released the 23Q3 quarterly report. The company's first three quarters had revenue of 296 million yuan (+25.78%), net profit of 35 million yuan (+42.81%), net profit of 35 million yuan (+42.81%), and net profit of 33 million yuan (+46.15%) after deducting non-return net profit of 33 million yuan (+46.15%). Looking at Q3 alone, the company's revenue was 94 million yuan (+10.80%), net profit of the mother was 0.7 billion yuan (+6.49%), and net profit was minus 0.06 billion yuan (+4.93%). Revenue grew steadily in the first three quarters.
Expenses for the period continued to be optimized, and net interest rates increased year over year. The company's gross margin for the first three quarters reached 42.22%, a slight year-on-year decline, mainly due to a decline in Q3 gross margin. The company stepped up cost control efforts in the first three quarters. Among them, sales, management, and R&D rates all improved, with year-on-year decreases of 1.77 pct, 0.58 pct, and 1.24 pct, respectively. The company's contract debt was 36 million yuan, an increase of 71% over the previous year, and the company received a significant increase in advance payments from customers. Net cash flow from operating activities was $36 million, growing steadily.
The integrated management and control platform for intelligent mines was successfully implemented to grasp the development trend of intelligent mining. The company's intelligent mine integrated management and control platform deeply integrates cutting-edge technologies such as cloud computing, big data, Internet of Things, artificial intelligence, mobile communication, and automatic control with mine production technology to achieve convenient, flexible and efficient “perception, integration, decision making, and service” full-chain SaaS platform construction, thus improving the level of mine safety, production, operation and management. At present, the Mayanson intelligent mine integrated management and control platform has been successfully implemented in Wangjiata coal mine and is running well. The project benchmarked the “Inner Mongolia Autonomous Region Intelligent Construction and Acceptance Measures for Coal Mines (Trial)”. Combining the actual usage requirements and future development trends of coal mines, the project completed the development of 340 system function modules, more than 1,500 design forms, integrated more than 52,000 automated measurement site information, 1,524 test cases, and more than 20G test data resources, greatly ensuring the safety of underground workers and improving management efficiency.
The subsidiary has deployed satellite Internet and has the dual advantage of technological ecology. Meyanson's subsidiary Chongqing Zhihuixing has been deeply involved in satellite interconnection for many years, and recently obtained three satellite Internet business licenses: “domestic very small aperture terminal earth station communication service”, “content distribution network business” and “value-added telecommunications business in the field of Internet access services.” The company plans to launch terminal products that meet the needs of satellite broadband communication in multiple scenarios based on relevant technology. Satellite Internet has been included in the category of “new infrastructure”, and there is broad scope for future applications.
At the same time, the subsidiary has knowledge and practice in core technologies such as sparse phased array algorithms, and has related products such as satellite signal modems. It will participate deeply in the construction and operation of satellite Internet, and is expected to take the lead in verification and implementation in the intelligent mining business.
Risk warning: Satellite Internet product development falls short of expectations; intelligent mine promotion falls short of expectations.
Investment advice: maintain a “buy” rating. The estimated operating income for 2023-2025 is 549/806/1,189 million yuan, with growth rates of 46%/48%/48%, respectively; net profit of 0.68/1.09/166 million yuan, corresponding to current PE of 57/35/23 times, maintaining the “buy” rating.