Key elements of the report:
The company released the 2023 annual results report, achieving total operating revenue of 9.042 billion yuan, an increase of 20.14%; realized net profit attributable to shareholders of listed companies of 989 million yuan, an increase of 18.39% year on year; realized 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.
Investment highlights:
Performance has grown steadily, and both main lines have developed with high quality. The company's 2023Q4 revenue is expected to be 3.298 billion yuan, up 20.20% year on year, and the growth rate is basically the same as the cumulative revenue growth rate for the first three quarters of 2023; 2023Q4 net profit for the single quarter is expected to be 227 million yuan, up 41.82% year on year, and the growth rate is significantly higher than the cumulative net profit growth rate for the first three quarters of 2023. We believe it mainly benefits from the high-quality development of the company's two main businesses, fintech and urban intelligence, and the company's refined management on the cost and expense side. On the one hand, the company expanded the layout of the company's fintech business through the acquisition of CICC Payment and China Digital Smart Exchange, expanding the layout of the company's fintech business; on the other hand, the company continued to iteratively update its big data platform AIcoreSystem and launched the “Wangdao” industry model and various new technologies and products such as data centers, palm veins, and LMS all-in-one computers to help the steady development of the company's urban intelligence business.
Actively transform “data operators” and boost public data operations. The company has completed the second phase of the Guangzhou Artificial Intelligence Public Computing Power Center project. The project will be expanded from the first phase built by the company to provide high-performance, high-precision AI computing capabilities and efficient and easy-to-use data processing, model training, and inference deployment services to help Guangzhou build a data infrastructure that applies the characteristics of data elements, promotes data circulation and utilization, and leverages the value of data. The project will deepen the company's capacity building in data infrastructure, strengthen the cohesiveness of cooperation between the company and Guangzhou Data Group, and promote the good development of the company's public data operation business. In addition, the company also effectively helped implement the value of Guangzhou's public data. Under the guidance of the Qingyuan Municipal Affairs Service Data Administration and the Guangzhou Data Exchange, the company launched two public data products, “Qingyi Loan (social security data)” and “Qingyi Insurance (medical insurance claims),” and successfully passed compliance approval to list and trade on the Guangzhou Data Exchange.
Profit forecast and investment advice: The company's overall performance grew steadily, slightly exceeding our previous profit forecast. According to the performance forecast, we adjusted our profit forecast. We expect revenue for 2023-2025 to be 90.42/103.65/11.675 billion yuan respectively (83.83/92.00/10.064 billion yuan before adjustment), and net profit to mother will be 980/11.46/1,293 billion yuan (9.55/10.69/1,179 million yuan respectively before adjustment), corresponding to the closing price PE on February 28, 2024 will be 28.14/24.05/21.32 times, respectively, to maintain “buying” ” Ratings.
Risk factors: Data element business progress falls short of expectations; market competition intensifies; technology research and development falls short of expectations; risk of exchange rate fluctuations.