Incident Overview: The company released its 2023 annual report and 2024 quarterly report. Revenue for 2023 was 829 million yuan, an increase of 36.46% over the previous year; net profit to mother was 17.8616 million yuan; net profit from non-return to mother was 13.9972 million yuan, turning a loss into a profit. In the first quarter of 2024, the company was 112 million yuan, up 1.36% year on year; net profit due to mother was 2.2486 million yuan; net profit after deducting non-return to mother was 22.06 million yuan, up 1.97% year on year.
The core power BIM enterprise has a stable dominant position. 1) The company is one of the few domestic enterprises that build BIM applications based on independent underlying technology platforms: it has independent BIM core technology and a complete business system, actively applies new technologies such as artificial intelligence, rapidly iteratively updates platform technology, and maintains the technological leadership of 3D modeling engine (DH3D), 3D digital Earth platform (DHGlobe), artificial intelligence platform (AI-Engine), GIM engine platform (GIMengine), IoT platform, rapid application development platform, BIMWise and other technology platforms, and Continuously improve and update the “3D Design Core Algorithm Library”. 2) Stable market position: The company's core product BIM design series software includes many products such as transmission line design, cable design, distribution network design, substation design, 3D collaborative design platforms, and 3D review platforms. It is one of the few domestic enterprises that can provide software products covering various specialties in 3D design of power transmission and transformation engineering. Among them, 3D circuit design software has a market share of more than 50%. At the same time, the company's electricity business revenue growth rate exceeded 40% in 2023, which also reflects the company's deep accumulation in the industry.
The multi-point layout of platforms, products, and consulting creates integrated optical storage and charging, and long-term potential can be expected. 1) BIM platform and software: The company carries out R&D iterations and innovative applications of existing core technology platforms such as the 3D Digital Earth Platform (DHGlobe), GIM Engine Platform (GIMEngine), Artificial Intelligence Platform (AI-Engine), and IoT Platform, and conducts research on the application of advanced artificial intelligence technologies such as target detection, image segmentation, natural language processing, and large language models in the vertical field of electricity. 2) BIM design consulting: increase power business and market development in new energy fields such as photovoltaics, wind power, energy storage, etc., and provide comprehensive energy solutions such as energy planning, new energy design and energy efficiency management for the development of data centers, undertaking 330 kV, 500 kV and other ultra-high voltage transmission and transformation designs in Shandong, Gansu and other regions, and 200,000 kilowatt (800,000 kilowatt-hours) supporting energy storage projects in Xinhua Hydropower Shache County, and actively helped complete and launch the first fully liquid-cooled overcharging demonstration station in Ningxia. 3) Industrial digital twin application and big data analysis based on BIM: The company's products and platforms are used in various fields such as electricity, water conservancy, transportation, municipal administration, etc., to continuously strengthen the expansion of new industries. At the same time, the company also trains locally skilled talents in the electricity, transportation, water and other industries for countries along the “Belt and Road”, laying an important foundation for the long-term development of overseas business.
Investment advice: The company is a leading enterprise in the field of power IT. It has advantages in the field of power BIM design, and continues to expand in the direction of new energy, integrated optical storage and charging, and AI based on traditional advantages. Long-term potential can be expected.
Net profit due to mother for 2024-2026 is estimated to be RMB 0.43/0.73/106 million, respectively, and the corresponding PE is 75X, 44X, and 30X, respectively, maintaining the “recommended” rating.
Risk warning: Market demand fluctuates; increased industry competition has led to changes in the industry pattern.