On April 12, PluriSoft released its 2023 Annual Report and 2024 Quarterly Report. In 2023, the company achieved revenue of 749 million yuan, a year-on-year increase of 7.80%; net profit to mother was 62.16 million yuan, a year-on-year decrease of 59.93%; and deducted non-net profit of 47.35 million yuan, a year-on-year decrease of 67.13%. 24Q1 achieved revenue of 77.52 million yuan, a year-on-year increase of 43.10%; net profit to mother of 3.27 million yuan and non-net profit deducted from mother of 280,000 yuan, all of which turned a year-on-year loss into a profit.
The progress of some projects was delayed in 2023, putting pressure on revenue and profit performance. In 2023, the company will continue to deeply cultivate existing strategic customers and advantageous industries, and actively expand new customers in new fields. However, due to delays in the bidding process for some projects, and delays in project acceptance, and the impact of the energy expansion of some major customers falling short of expectations, the company achieved overall revenue of 749 million yuan in 2023, an increase of 7.80% over the previous year, and the revenue growth rate slowed to a certain extent. At the same time, in 2023, the company opened up new business areas and faced more intense market competition. In addition to rigid expenses such as personnel costs, the company's overall gross profit margin in 2023 was 38.43%, down 9.23 pcts from the same period last year. Net profit to mother was 62.16 million yuan, and net profit to mother was 8.30%, down 14.52 pcts from the same period last year.
The 24Q1 performance was outstanding. The 24Q1 company's performance was impressive. During the reporting period, the company achieved revenue of 77.52 million yuan, a year-on-year increase of 43.10%, and achieved net profit of 3.27 million yuan, turning a loss into a profit over the previous year; the R&D expenses ratio was 19.17%, or -33.70 pcts year on year. The decline was mainly due to an increase in capitalized investment in some R&D projects. The 24Q1 net operating cash flow of the company was 128 million yuan, a year-on-year decrease of 24.82%, mainly due to factors such as an increase in the company's repayments and a decrease in corporate income tax in the early period of current payments.
Xinchuang's business is progressing at an accelerated pace, and we continue to monitor the progress of Xinchuang's business. The company continues to promote Xinchuang product development and business expansion. So far, it has formed many software products or technology platforms such as Xinchuang ERP, EPM, EAM, and Yunhu platform. In 2023, the company thoroughly researched and analyzed the market and customer needs. In that year, the company's Xinchuang EAM was successfully promoted and applied in a provincial coal company. EAM was also piloted and launched in a large central enterprise group and is currently being promoted; the company's Xinchuang EPM comprehensive budget management system to replace Oracle has completed a blueprint design for a large central enterprise group and is currently under construction; the company's Xinchuang ERP demonstration project expansion is also being actively promoted.
Earnings Forecast and Investment Advice: In conjunction with the 2023 Annual Report, we have adjusted and added the 2026 earnings forecast. Considering the impact of delays in bidding and acceptance of some projects in 2023, as well as the rigid costs and expenses brought about by new personnel, we lowered the company's 2024-2025 revenue and profit forecast. We expect the company's revenue for 2024-2026 to be $902/10.96/1.07 billion yuan, respectively (the forecast value before 2024-2025 is 11.50/1,408 million yuan), and net profit due to mother of 1.70/2.02/246 million yuan, respectively (the forecast value before 2024-2025 is 2.53 billion yuan) /338 million yuan), corresponding PE was 19/16/13 times, respectively, maintaining the “buy” rating.
Risk warning events: the risk of a decline in the prosperity of the petroleum and petrochemical industry; the risk that business development in the construction industry falls short of expectations; the risk that the development of strategic customers and new business fields falls short of expectations; the risk that the promotion of innovation in the industry falls short of expectations, etc.