[Overall performance]
(1) Revenue of $538 million (+18.46%) for 23 years, net profit of 81.1537 million yuan (+31.38%), net profit of non-return to mother of 679.13,200 yuan (+47.88%).
(2) 23Q4 revenue was 235 million yuan, up 17.19% year on year, net profit to mother of 49.541 million yuan, up 33.73% year on year, net profit after deducting non-return net profit of 43.4058 million yuan, up 32.73% year on year.
[View by industry]
In '23, revenue from the medical insurance sector was 201 million yuan (+16.19%), revenue from the smart social sector was 137 million (+6.00%), revenue from the smart electricity sector was 155 million yuan (+26.56%), and revenue from data element services was 286.15,500 yuan (+54.63%).
[View by product]
Revenue from software development business in '23 million (+11.46%), commercial software revenue of 158.318 million yuan (+6.34%), revenue from operation and maintenance and technical services of 164 million yuan (+28.95%), and revenue from software and system integration of 44.0934 million yuan (+38.13%)
[View by region]
In '23, Shandong's revenue was 400 million yuan (+21.71%), and revenue from outside the province was 131 million yuan (+8.47%).
[Gross profit margin, cash flow]
Gross profit margin of 53.27% in '23 (year-on-year decrease of 4.13pct), 23Q4 gross profit margin of 52.91% (year-on-year decrease of 5.4pct);
Net cash flow from operating activities in '23 was 6.1133 million yuan (-115.31%), and net cash flow from operating activities in 23Q4 was 76.1961 million yuan, a year-on-year decrease of 51.09%.
[Fee rate]
In 23, the sales/management/R&D expense ratio was 7.55%/13.01%/18.18%, the sales expense ratio decreased by 0.76 pct year on year, the management expense ratio decreased by 1.41 pct year on year, and the R&D cost rate decreased by 5.24 pct year on year.
23Q4 sales/management/R&D expense ratio 8.18%/11.09%/11.22%, sales expense ratio decreased by 1.1 pct year on year, management cost ratio increased 0.03 pct year on year, and R&D cost rate decreased by 3.79 pct year on year.
Key points of investment
Outstanding performance, new orders continue to rise
The company achieved revenue of 538 million yuan (+18.46%) in 23, net profit attributable to mother of 81.1537 million yuan (+31.38%), and net profit of non-return to mother of 679.13,200 yuan (+47.88%). Looking at Q4 alone, the company achieved revenue of 235 million yuan, a year-on-year increase of 17.19%, net profit of 49.541 million yuan, a year-on-year increase of 33.73%, after deducting non-return net profit of 43.4058 million yuan, an increase of 32.73% year-on-year.
The company seizes development opportunities in digital transformation, intelligent upgrading, services, and model innovation in social, health insurance, and electricity industries. With “AI+ blockchain” as the core driving force, the company actively develops new products and applications, deepens research and application of data intelligence, and maintains a leading edge in technological and business innovation. The company signed a new order worth 617 million yuan, making a good start for 2024.
Blockchain platform+inclusive finance+inclusive insurance comprehensively built a data element ecosystem. In 2023, the company's data element business achieved revenue of 28.655 million yuan, an increase of 54.63% over the same period of the previous year; the amount of newly signed contracts was 46.216,400 yuan, an increase of 27.94% over the same period last year. The company is positioned as a data element delivery service provider. Relying on a completely autonomous and controllable “big weft chain” technology and product system, the company makes comprehensive efforts in technology research and development, platform construction, and scenario application to promote the rapid development of the data element business. In 2023, the company will actively build a data element delivery channel, promote the rapid entry of data assets onto the chain, and open up the blockchain “data internet” in an orderly manner.
At the same time, it actively explored public data licensing and operation services, won the bid, and built the Jinan Public Data Authorization Operation Platform. The company is expected to continue expanding its business for 24 years with proven experience in the field of data elements.
The nationalization strategy progressed steadily, and new orders from the overseas market achieved a relatively rapid increase in 23 years. The company's revenue within Shandong Province was 400 million (+21.71%) and revenue from outside the province was 131 million (+8.47%). Among them, the amount of new contracts signed in the overseas market increased 13.4% over the previous year, and the revenue business from outside the province accounted for about 30%. The company successfully completed the restructuring of the national marketing team, laying a solid foundation for the company to advance its nationalization strategy. The company's nationalization strategy is progressing steadily, expanding its business in Hunan, Inner Mongolia, Jiangxi, Guizhou and other provinces, and its market share continues to expand.
Profit forecasting
We expect the company to achieve revenue of 6.32/7.74/956 million yuan respectively in 2024-2026, up 17.60%/22.46%/23.47% year on year, and corresponding net profit to mother of 0.97/1.22/ 151 million yuan, respectively, with year-on-year growth rates of 19.89%/25.04%/24.32%, corresponding EPS 0.24/0.30/0.38 yuan, corresponding to 36.10 times PE in 2024. Despite being affected by the macro environment and budget, the company's G-side business maintained a good growth trend. At the same time, the company's data element business revenue continued to rise, and business outside the province expanded in an orderly manner. Based on this, we maintain a “buy” rating.
Risk warning
Risk of declining core competitiveness, rising labor costs, expansion of the province's territory falling short of expectations, policy progress falling short of expectations