Incidents:
The company released its 2023 annual report. In 2023, the company achieved operating income of 1,419 million yuan, +15.77% year-on-year; net profit to mother was 162 million yuan, +1.11% year-on-year.
Comment:
A leading domestic urban transportation planning enterprise, with good performance growth. In 2023, the company achieved operating income of 1,419 billion yuan, a year-on-year increase of 15.77%, and net profit to mother of 162 million yuan, an increase of 1.11% year-on-year. In 2023, the three main businesses of big data software and smart transportation implementation, planning consulting services, engineering design and inspection revenue were $579/5.09/328 million, respectively, with year-on-year growth rates of 60.65%/0.11%/-7.88%, respectively. The rapid revenue growth of the company's big data software and smart transportation business in 2023 was due to the successful implementation of a number of benchmark projects such as BIM modeling, smart transportation engineering, and signal timing. At the same time, smart high-speed achieved successful replication, and won the bid for the Fujian Expressway Group's digital technology guidance and consulting service project for the Quanxia section expansion project of the Shenhai Expressway Group. The energy storage solution was applied, and the product technology was recognized.
The formation of “1” integrated digital base+ “4” is based on digital professional services and is committed to the development of urban transportation. The company uses the “CIM+BIM+TIM” digital twin platform combined with AI technology to provide strong computational support to help cities improve competitiveness, efficiency, livelihood improvement, and infrastructure security. The company played a key role in the construction plan of the Shenzhen Railway Phase V project and track design for Line 22 and Line 27, enabling real-time online operation and promotion of more than 300,000 vehicles during peak hours. At the same time, the company also improved the parking utilization rate through services such as one-click reservation and peak sharing on smart parking platforms. On April 20, Shenzhen Communications announced that the company's smart street light poles have already been implemented in smart road construction projects in various cities such as Shenzhen, Foshan, Dongguan, Suzhou, and Wuxi.
The low-altitude field continues to gain strength, and we are optimistic about the future development of smart city air traffic. As the core technical unit of Shenzhen's low-altitude economy, Shenzhen Communications is committed to serving all levels of urban government, including low-altitude economic planning, policy formulation, industrial development, software and hardware design and integrated delivery services. Recently, the company and a Shenzhen research and consulting agency jointly won the bid to undertake the first phase of the Shenzhen Low-altitude Intelligent Integrated Infrastructure Project, which aims to build an intelligent integrated system software platform covering the entire city, including low-altitude operation management and service systems, and related supporting facilities. The implementation of this project will further enhance the company's R&D and delivery capabilities in the low-altitude field. In addition, the company also cooperated with the China Civil Aviation Management Cadre College and signed the “Smart Air Traffic Operation Technology Laboratory (SAMOT)” agreement at the World Low Altitude Economy Forum to jointly promote the Shenzhen Smart City Air Traffic Pilot Project.
Profit forecast: The company's net profit for 2024-2026 is expected to be 1.84/2.24/272 million yuan, respectively, and the corresponding PE is 67/55/45 times, respectively. Covered for the first time, a “gain” rating was given.
Risk warning: customer growth falls short of expectations, profit forecasts and valuation judgments fall short of expectations