Radio and Television Express is a leader in the digital economy industry under Guangzhou's state-owned assets. Radio and Television Express is a high-tech listed company controlled by Guangzhou's state-owned enterprise Guangzhou Mathematical Technology Group. The company focuses on the two main lines of fintech and urban intelligence, lays out the four major elements of artificial intelligence: algorithms, computing power, data, and scenarios, and is one of the leaders in the construction of the digital economy. In the fintech sector, Radio and Television Express ranked first in the domestic smart financial equipment market for 15 consecutive years, and is the largest supplier and service provider of financial intelligent self-service equipment in China. At the same time, the company is actively expanding overseas markets, covering the five major regions of Asia Pacific, the Middle East, Europe, Africa and America, and its products and services have entered more than 110 countries and regions around the world. In recent years, the company's revenue and net profit have grown steadily. In 2022, it achieved revenue of 7.526 billion yuan, an increase of 10.98% over the previous year, and achieved net profit of 827 million yuan, an increase of 0.37% over the previous year.
Digital infrastructure and data resources are listed as the “two major foundations” of digital China. The stability of the two basic foundations is the foundation for the flourishing of upper-level applications, and their related fields may receive priority development and support. In terms of digital infrastructure, large models have greatly boosted the demand for intelligent computing power, and inclusive computing power has become a development priority. China continues to guide the construction of local public computing power platforms and promote the localization of computing power. In terms of the data resource system, China is actively guiding the development of the data element industry. Since December 2022, China has successively issued draft comments related to the entry of enterprise data assets, the top-level design “20 Data Rules”, and the “Digital China Overall Layout Plan”, and announced the establishment of the National Data Administration. Local governments have called in response, relevant policies and regulations have been introduced one after another, and central state-owned enterprises have taken the lead in exploring the value mining of data elements.
Take advantage of numbers and counting, and strive to be the vanguard in the digital economy era. The company has a comprehensive layout in terms of both data elements and intelligent computing construction. The company actively participated in the construction of the Digital Exchange and is the third largest shareholder of the Guangzhou Data Exchange. At the same time, the company increased its capital and actively promoted the monetization of data products. Radio and Television Express is developing its own data base and building a data governance platform, and is expected to work with its controlling shareholder Guangzhou Mathematical Group and brother company Guangzhou Data Group to explore the value of data elements. In addition, the company's Radio and Television Wuzhou teamed up with Huawei and Feiteng to continue the process of localizing computing power and launch the Shengteng series of servers. The company also actively participated in the construction of the Intelligent Computing Center and successively won bids for the Guangzhou Artificial Intelligence Public Computing Power Center Phase I and Phase II projects, continuing to contribute to the inclusion of computing power and the localization of computing power.
We forecast that the company's earnings per share for 2023-2025 will be 0.39/0.44/0.51 yuan. According to comparable company estimates, the company was given a price-earnings ratio of 36 times in 2024, corresponding to a reasonable share price of 15.84 yuan. For the first time, a purchase rating was given.
Risk warning
Technological innovation risk; goodwill impairment risk; exchange rate fluctuation risk; risk of data element development falling short of expectations; risk of business development falling short of expectations