Incident: On the evening of February 27, Radio and Television Express released the 2023 Annual Results Report
Revenue slightly exceeded expectations, and several financial figures reached record highs. In 2023, the company achieved total revenue of 9.042 billion yuan, up 20.14% year on year; operating profit of 1,450 million yuan, up 19.94% year on year; total profit of 1,433 billion yuan, up 17.53% year on year; net profit attributable to shareholders of listed companies of 979 million yuan, up 18.39% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 834 million yuan, an increase of 22.32% year on year. The reason why the company's revenue exceeded expectations was mainly due to the expansion of overseas ATM machine sales and the growth in the business ecosystem brought about by mergers and acquisitions. It is worth mentioning that the company's total operating income, net profit to mother, and net profit after deducting non-return to mother all reached record highs in 2023.
The parent company changed its name to Guangzhou Digital Technology Group to create a new digital economy ecosystem in Guangzhou. On February 2, 2024, Guangzhou Radio Group, the parent company of the company, officially changed its name to Guangzhou Digital Technology Group to meet the challenges of the digital economy era with a fresh attitude. As a leading enterprise in the digital economy in Guangzhou, Guangzhou Radio Group has taken the lead in building a “1+5+N” digital technology industry layout, promoting the integrated development of the digital technology innovation chain, accelerating the formation of new quality productivity, and building a digital industry ecosystem by building data infrastructure, promoting digital industry integration, and opening up industrial application scenarios, etc., to help Guangzhou accelerate the construction of a leading city in the digital economy. The purpose of this major transformation is to integrate digital industry resources within the Group and related digital industry resources in Guangzhou, and make Guangzhou Mathematical Group a “benchmark enterprise” for local state-owned enterprises in the digital economy era. This will also bring more resources and business space to its Radio and Television Express.
The data element business continues to be promoted, opening up new growth space for the company. On the morning of October 25, 2023, the National Data Administration was officially unveiled, and the policy formulation process in basic fields related to public data operations, data authorization registration, and data transactions may be accelerated. Radio and Television Express continues to promote the development of data element business in Guangdong Province, constructing and operating digital service platforms such as “Sui Zhi Management” and “Offshore Easy” to help the government manage “scientifically” and enhance the “new vitality” of cross-border trade; promote the modernization of social governance, build the country's first “unmanned bank”, help build the first demonstration line for the application of palm payment technology, and build Guangzhou's first digital yuan transportation experience scenario.
Profit forecast: We believe that in the context of the country's digital transformation in full swing and the market value management of state-owned enterprises included in the assessment, the company is one of the few steady development targets with large room for technological growth. Investors are advised to continue to pay attention. The company's revenue for 2023-2025 is estimated to be 90.42/103.63/11.844 billion yuan, respectively, and net profit to mother is 9.79/12.03/1,428 billion yuan, respectively, maintaining a “buy” rating.
Risk warning: The development of the data element industry falls short of expectations, macroeconomic growth falls short of expectations, overseas business expansion falls short of expectations, valuation models and profit forecasts fall short of expectations