Incident: The company's revenue in 2023 was 9.043 billion yuan, up 20.15% year on year; net profit to mother and net profit after deduction were 977 million yuan and 818 million yuan, respectively, up 17.80% and 19.61% year on year. The performance was in line with expectations.
Comment:
The full-year results are in line with expectations, and the growth rate of overseas revenue is impressive. The company's revenue in 2023 was 9.043 billion yuan, up 20.15% year on year; net profit to mother and net profit after deduction were 977 million yuan and 818 million yuan respectively, up 17.80% and 19.61% year on year. Looking at a single quarter, Q4 revenue was 3.30 billion yuan, up 20.25% year on year; net profit to mother and net profit after deduction were 224 million yuan and 151 million yuan respectively, up 38.48% and 77.10% year on year. By business, revenue from the fintech business was 6.035 billion yuan, a sharp increase of 28.48% over the previous year; revenue from the urban intelligence business was 3.08 billion yuan, up 6.32% year on year. The high-quality development of the two main businesses drove steady growth in the company's performance. By region, the company accelerated its global layout and increased the promotion of innovative solutions such as digital intelligent network construction in the global market. The annual overseas market revenue reached 1,620 billion yuan, a sharp increase of 50.47% over the previous year, and its share of revenue further increased to 17.92%, an increase of 3.61 pct over the previous year.
Accelerate the layout of data element fields. 1) Data element infrastructure: The company built the big data platform AICore System and the “Wangdao” industry model, and actively participated in the construction of the Guangzhou Artificial Intelligence Public Computing Power Center. 2) Data trading: As a data trading platform initiated by Guangdong Province, the Guangzhou Data Exchange will be an important channel for data circulation transactions in the province in the future. The company currently holds 10.50% of the shares in the Guangzhou Data Exchange and is expected to fully enjoy the opportunity to release the value of data elements. 2) Data application: The company invigorates data application services such as public data development and data service providers, and exploits the “data element ×” effect by setting up a digital investment platform, radio and television digital investment, and acquiring multiple aspects of CSSI's advance card data elements.
The layout in the field of computing power continues to deepen. The company carries out independent research and development around the “Four Clouds and Two Centers”, builds exclusive cloud services such as Guangzhou Government Innovation Cloud, Public Security Xinchuang Cloud, State-owned State-owned Enterprise Cloud, and AI Intelligent Computing Cloud, and promotes the construction of next-generation high-availability cloud data centers and computing power centers. In addition, the company's Radio and Television Wuzhou is engaged in the design, production and sale of general-purpose servers, AI servers, etc., and launched products such as the Huawei Kunpeng and Shengteng series servers. The sales scale increased dramatically in 2023. With the iterative development and widespread application of AI models, demand for computing power is expected to increase further, and Wuzhou is expected to continue to benefit as a premium partner of Huawei Ascend.
Investment advice: The company's 2024-2025 EPS is expected to be 0.51 and 0.61 yuan, respectively, and the corresponding PE is 24 and 20 times, respectively.
Risk warning: Policy progress falls short of expectations; business progress falls short of expectations; industry competition intensifies, etc.