Incident Overview

On April 9, 2024, Tulsi (300229) released its 2023 annual report. In 2023, it achieved operating revenue of 782 million yuan, a year-on-year decrease of 13.84%; realized net profit of 36.466 million yuan, a year-on-year decrease of 71.45%.

Analytical judgment:

Changes in the macro environment and tight government budgets have affected the company's revenue growth rate and profit.

The company achieved total operating income of 782 million yuan, -13.84% year-on-year; realized net profit attributable to shareholders of listed companies of 0.36 million yuan, -71.45% year-on-year (after adjustment); realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 2,428,600 yuan, -96.97% year-on-year (adjusted). 1) Affected by factors such as changes in the macro environment and reduced investment from industry users, the company's revenue level and profit contribution in government affairs, media, public safety and other industries declined compared to the same period last year. 2) In the context of the country's accelerated development of the digital economy and the rapid development of artificial intelligence, the company has increased the development and promotion of innovative applications of Piotianda models and multi-scenario AI agents. In 2023, the company's artificial intelligence software products and services achieved revenue of 237 million yuan, +11.76% compared with the same period last year, accounting for 30.32% of revenue.

? The company has increased the development and promotion of innovative applications of Piotianda models and multi-scene AI agents, and AI applications continue to be implemented.

Since the release of the Tuotian industry model at the end of June 2023, the company has gradually explored and implemented application scenarios in the finance, media, government affairs, public safety and other industries. It has signed more than 20 contracts in financial and other industries, with a total contract amount of about 50 million yuan.

Among them, based on the company's leading advantages in the financial risk control market, it took the lead in seamlessly integrating the financial model with the existing financial risk control business to help users improve experience, control risk, reduce costs and increase efficiency. Tuotian's financial industry model and data-enabled users include the Agricultural Development Bank of China, Shanghai Pudong Development Bank Credit Card Center, Ping An Bank, Bank of China Zhejiang Branch, Zheshang Bank, Xiamen International Bank, China Development Bank, Bank of Tianjin, Minsheng Bank, People's Insurance Insurance, and Shanghai Agricultural Commercial Bank. Furthermore, the Tuotian Financial Industry Model has also been successfully applied in Ping An Bank's “audit brain” Ping An's integrated digital intelligence platform, which has enabled innovation and empowerment of the Tuotian Model in the field of financial auditing. The fintech sector's AI and data revenue was 43 million yuan, +29.85% over the same period last year.

Deeply involved in data services, leading the company's corpus resources.

1) In terms of data resources, the company collected and cleaned up millions of collection points to ensure the high authority and credibility of the collection sources; 2) The company has more comprehensive corpus material. In 2023, the company increased product iterative research and development of data infrastructure and data asset platforms, enhanced short video collection capabilities, and strengthened the multi-dimensional detailed sorting of data resources. The company currently has more than 200 billion high-quality Internet Chinese data sets, and has maintained rapid growth with an average update rate of more than 500 million pieces per day. The company has a compliant and secure multi-modal corpus of Chinese, graphics, videos, etc., covering information, government affairs, finance, public opinion, patents, etc., which can be used for alignment; 3) In terms of data asset management, the company actively strengthens communication with the Shanghai Data Exchange, jointly explores data asset listing operation practices, and continuously enhances the optimization and refinement of relevant mechanisms such as application scenarios or business models of data resources, original data type sources, processing, maintenance, and security protection to comprehensively improve the company's data asset management efficiency.

Investment advice

According to the company's annual report data, we lowered the company's 24-25 revenue forecast of 1,396/1,722 billion yuan to 24-25 revenue forecast of 9.76/1,181 million yuan, an additional 26-year forecast of 1,388 million yuan; lowered the 24-25 earnings per share (EPS) forecast of 0.37/0.46 yuan to 24-25 of 0.27/0.35 yuan, respectively, and added a 26-year forecast of 0.42 yuan, corresponding to 14.48 billion yuan on April 9, 2024 The closing price of yuan/share, PE was 53.12/41.91/34.14 times, respectively, maintaining the company's “buy” rating.

Risk warning

Increased competition in the industry has led to a decline in profit levels, the core technology breakthrough process has fallen short of expectations, and there is a risk of loss of the company's core talent team.