Recently, Starlink Technology and Intel jointly released a vector database solution, superimposed Intel's AI PC program, and the company is expected to benefit deeply. At the same time, the data factor policy has been further strengthened, and the Starring database business is expected to usher in new opportunities for development and maintain an increase in holdings rating.
Key points to support ratings
AI PCs are speeding up, and the company and Intel are collaborating closely on vector databases. According to the company's official website, Intel recently launched an AI PC acceleration program and will officially release the AI PC Intel Core Ultra processor on December 14 this year. It is estimated that 100 million units will be shipped by 2025. At the 2023 China International Import Expo, the company and Intel jointly released the AIGC vector database solution, which can realize the high real-time query, search, and recall functions of massive vector data. The company and Intel are expected to benefit from the in-depth cooperation between the company and Intel.
The data element ushered in intensive catalysis. Liu Liehong, director of the National Data Administration, said while attending the launch of the Beijing Data Infrastructure System Pilot Zone on November 10 that it is necessary to explore the distribution and implementation of the “three powers” of data and cultivate a multi-level data circulation and transaction system. On November 16, the Guizhou Provincial Bureau of Big Data issued the “Administrative Measures on Data Element Registration Services in Guizhou Province (Trial)”, which proposed that the data authorities of the provincial people's government should guide registration service agencies in formulating and implementing relevant standards to promote the orderly development of data element registration service activities. The marketization process of data elements has been further accelerated.
Increased sales investment and the implementation of restricted stock incentive plans have led to increased net profit losses on the mother's account. In the first three quarters, the company's revenue was 220 million yuan (+30.1%), net profit was 270 million yuan (-19.2%), net profit was minus 300 million yuan (-18.8%); Q3 revenue was 0.8 billion yuan (+15.0%), net profit was 0.8 billion yuan (-31.3%), and net profit was 0.9 billion yuan (-30.0%). The increase in net profit for the first three quarters compared to the same period was mainly due to the company's market expansion and implementation of the 2023 restricted stock incentive plan, which led to a year-on-year increase of 33.8% and 45.4% in Q3 sales and management expenses.
valuations
Net profit for 23-25 is expected to be -1.9, -1.0, and -0.2 billion yuan, and EPS is -1.56, -0.86, and -0.13 yuan (considering the increase in vector database costs, downgraded net profit of 22.8% and 714.3% in the year 23 and 24). The current stock price corresponds to PS 15X, 11X, and 8X, respectively. The company is closely cooperating with Intel and is expected to benefit from the AI PC program and maintain an increase in holdings rating.
The main risks faced by ratings
Customer growth falls short of expectations; cost control falls short of expectations; and vector database iteration falls short of expectations.