A leading company in the field of software services, achieving significant growth in performance, innovative software. As a leading company in the field of software services, it focuses on providing IT solutions for insurance, banking and other companies. The company achieved total revenue of 1,688 billion yuan in 2023, an increase of 28.32% over the previous year, and achieved a net profit of 70.52 million yuan attributable to the owners of the parent company. Compared with the same period last year, the company turned a loss into a profit. This significant increase in performance reflects the company's steady development in traditional business areas and the continuous expansion of its market share. During the reporting period, the company continued to increase R&D investment in information fields such as artificial intelligence models, formed technological products such as innovative new knowledge platforms, and participated in a number of core customer intelligent computing projects, bringing new business opportunities to the company's business and achieving a steady increase in overall revenue.

AI technology has achieved remarkable results. In adhering to existing business development strategies, innovative companies in the industry will continue to promote and strengthen the deep application of next-generation information technology such as cloud computing and artificial intelligence in various industries to accelerate the development of the company's business into a wider range of fields, and actively and pragmatically explore new businesses and models. For example, the layout of Xinzhi Software in the field of artificial intelligence has achieved remarkable results, especially the launch of the “Innovative New Knowledge Platform”. The platform is a comprehensive artificial intelligence capability connection platform. Using technologies such as automation, big data, AI, and cloud subscriptions, it can quickly create AI application scenarios using large language models. The platform is rich in applications, covering various products such as intelligent training robots, intelligent marketing robots, call robots, etc., providing enterprises with fast, accurate and reliable robot application scenario solutions. The launch of this platform not only showcased the deep accumulation of innovative software in AI technology, but also opened up new growth space for the company's future development.

Deepen the application of AI and promote the digital transformation of enterprises

Through the launch of the Xinzhi Xinzhi Platform, Xinzhi Software is actively promoting the digital transformation of enterprises. The rapid construction, deployment and management capabilities of the platform enable enterprises to easily connect data to AI models and achieve intelligent upgrading of business processes.

In 2023, the company's R&D investment in the AI field continued to increase, forming technology products such as innovative new knowledge platforms. Through steady expansion and layout of segments such as the financial industry and enterprise service industry, the company is expected to achieve revenue of more than 1.6 billion yuan, laying a solid foundation for the company's long-term development in the AI field. With the continuous maturity of AI technology and the expansion of application scenarios, innovative software is expected to achieve more breakthroughs in the field of AI, bringing continuous value growth to investors.

Profit forecasting

The company continues to increase investment in the financial industry, enterprise service software, etc. in traditional business to achieve revenue growth. In addition to traditional business, the company actively promotes the field of artificial intelligence, bringing new business opportunities to the company's business and achieving a steady increase in overall revenue.

We predict that the company's revenue for 2023-2025 will be 16.87, 21.35, and 2,623 billion yuan, respectively, and EPS will be 0.30, 0.59, and 0.75 yuan, respectively. The current stock price corresponds to PE at 60, 31, and 24 times, respectively, covered for the first time, giving it a “buy” rating.

Risk warning

Market competition increases risks, AI technology development falls short of expectations, risk of rising labor costs, etc.