Macroeconomic environmental impacts, delays in the implementation and acceptance of government projects, and short-term fluctuations in net profit. Affected by factors such as changes in the macro environment and reduced investment from industry users, the progress of the implementation, delivery, and inspection of the original projects of relevant government units has been delayed, and the company's revenue level and profit contribution to government affairs, media, public safety and other industries declined compared to the same period last year. In 2023, the company's revenue was 782 million yuan, down 13.84% year on year; net profit to mother was 36.466 million yuan, down 71.45% year on year.
With the release of customer demand for digital China and artificial intelligence, the company's market sank and expanded, and in-hand orders rose at the end of 2023. As demand for products such as artificial intelligence is released by relevant government agencies, demand in rigid fields such as public security and safety increases, and the company's further decline and expansion of customers from relevant government agencies, the number of new orders is expected to rise, and the company's performance is expected to gradually recover and rebound.
By the end of 2023, the company's on-hand orders were 543 million yuan, an increase of 14.485 million yuan over the end of 2022. The amount of orders in hand at the end of the period began to rise year-on-year.
In 2023, artificial intelligence software products and services achieved revenue of 237 million yuan, an increase of 11.76% over the previous year, accounting for 30.32% of revenue. In the context of the rapid development of artificial intelligence, the company has increased the development and promotion of innovative applications of the Piotianda model and multi-scenario AIAgent. In 2023, the company's artificial intelligence software products and services achieved revenue of 237 million yuan, an increase of 11.76% over the previous year, accounting for 30.32% of revenue. Since the release of the Piotian 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, it was the first to achieve seamless integration of the financial model with the existing financial risk control business. Furthermore, the Tuotianda model was successfully applied in Ping An Bank's “audit brain” Ping An Vision integrated digital intelligence platform.
The AI and data revenue of the fintech sector in 2023 was 42.9707 million yuan, an increase of 29.85% over the same period last year. In terms of digital government, there is a strong demand for application exploration of large government models, and the company has provided trials of segmented scenarios in various provincial government departments. In the media field, the company has become one of the top 5 core suppliers of People's Daily. The Piotan Media Big Model Empowerment Application has already entered the in-depth testing stage in many organizations such as People's Daily. In addition, the Tuotian Public Security Model is also gradually being implemented in scenarios where public security information is being handled and intelligently assisted in case handling.
Profit forecast: We forecast that the company's net profit due to mother in 2024-2026 will be 2.33, 2.97 million yuan, and 362 million yuan, respectively. The year-on-year increase in 2025-2026 will increase 27.39% and 22.01% year-on-year, giving it a “buy” rating.
Risk warning: AI business progress falls short of expectations, profit forecasts and valuation models have been lowered.