Domestic semantic intelligence leader, maintaining a “buy” rating
The company has long been deeply involved in the field of natural language processing, has strong technical strength, and is leading the way in data security and other fields.
Considering the company's increased investment, we lowered the company's 2024-2025 net profit forecast to be 2.35 million yuan and 342 million yuan (the original forecast was 4.10 million yuan and 521 million yuan), adding the 2026 forecast to 440 million yuan, EPS of 0.30, 0.43, and 0.55 yuan/share. The current stock price corresponds to the 2024-2026 PE of 50.0, 34.3, and 26.7 times. Considering the company's leading position in the AIGC field, we maintained a “buy” rating.
Ongoing orders increased year on year, providing support for subsequent performance growth (1) The company released its 2023 annual report, achieving full year operating income of 782 million yuan, a year-on-year decrease of 13.84%; realized net profit of 364.66 million yuan, a year-on-year decrease of 71.45%; realized net profit without return to mother of 2,428,600 yuan, a year-on-year decrease of 96.97%. By industry, corporate finance, manufacturing, energy and other enterprise customer revenue was 313 million yuan, down 9.79% year on year; revenue from the public safety industry was 199 million yuan, down 22.40% year on year; revenue from the government industry was 171 million yuan, down 12.85% year on year; and internet and media revenue was 97.7578 million yuan, down 8.23% year on year.
(2) The company's comprehensive gross margin was 68.37%, an increase of 4.66 percentage points over the previous year, mainly due to the sharp reduction of the integrated business of the subsidiary Tianxing NetSecurity.
(3) The company's expense ratio increased a lot during the period. The sales expense ratio, management expense ratio, and R&D expense ratio were 19.89%, 25.91%, and 18.81%, respectively, up 4.4, 8.87, and 4.77 percentage points from the previous year.
(4) In addition, as of the end of 2023, the company's on-hand order amount was 543 million yuan, an increase of 14.485 million yuan over the end of 2022.
The Piotanda model was released and quickly implemented in various industry scenarios
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.
Risk warning: Policy support falls short of expectations; the company's business development falls short of expectations.