Growth prospects are worth looking forward to, maintaining a “buy” rating
The company's revenue grew steadily in 2023, after deducting high growth in non-profit. Considering the impact of share payment fees and labor costs, we lowered our 2024-2025 and added 2026 profit forecasts. We expect net profit due to mother for 2024-2026 to be 0.76, 1.00, 132 million yuan (originally 1.51 and 221 million yuan), EPS is 0.87, 1.15, and 1.52 yuan (originally 1.74 and 2.54 yuan), and the current stock price corresponding PE is 37.4, 28.2, and 21.4 times. Driven by the firmware business and IDE business, the company's growth prospects are worth it Expect to maintain a “buy” rating.
The company released its 2023 annual report, after deducting high growth in non-profit
(1) In 2023, the company achieved revenue of 320 million yuan, an increase of 13.55% over the previous year. The increase in revenue was mainly due to the company's acquisition of new PB business revenue from Shenzhen Ai Puyang. By business, cloud computing equipment core firmware revenue was 143 million yuan, down 4.91 percentage points year on year, cloud service revenue was 110 million yuan, down 9.09 percentage points year on year, and Ai Puyang PB's business revenue was 48 million yuan.
(2) Achieved net profit of 56 million yuan, an increase of 10.11% over the previous year, and realized net profit of 06 million yuan without return to mother, an increase of 110.00% over the previous year. Due to the implementation of the equity incentive plan and the merger and acquisition of Shenzhen Aipuyang's core employees during the reporting period, share payment expenses were 21.34 million yuan in 2023. After excluding the impact of share payment fees, net profit attributable to mother was 74.52 million yuan, an increase of 26.72% over the previous year. The company's revenue increased, and at the same time, efforts to collect accounts receivable were increased, and bad debt preparations were drastically reduced, driving the company's high growth in deducting non-profits.
(3) The gross margin in 2023 was 46.16%, down 4.95 percentage points from the previous year, mainly due to a direct manual increase in the cloud computing core equipment business, and the gross margin fell 7.48 percentage points.
(4) Sales, management, and R&D cost rates were 2.25%, 19.72%, and 20.40%, respectively. The year-on-year increase was -1.28, +5.88, and -11.97 percentage points, respectively. The increase in the management expense ratio was mainly due to an increase in employee remuneration and share payment expenses. The decline in R&D expenses was mainly due to a reduction in technical service fees in line with R&D project requirements.
Firmware and IDE businesses work together to drive the company's growth
The company is the only supplier of X86 based BIOS and BMC firmware in China. It has deep technical barriers and continues to break through in breadth and depth of application. While consolidating its domestic market share, the company is actively developing a global business layout, and is expected to achieve new breakthroughs. Aipuyangyun's native low-code.NET IDE product development continues to advance, and PB and PS are also expected to upgrade versions in 2024 to activate the stock market and open up room for growth.
Risk warning: The localization process falls short of expectations; market competition intensifies; core technology cannot meet market demand.