The results were high in 2023, and cash flow continued to improve. In 2023, the company achieved operating income of 2,516 billion yuan, +60% year-on-year; net profit of 343 million yuan, +41%; net profit after deducting net income of 230 million yuan, +37% year-on-year. By industry, the company's energy revenue in special fields, space surveying and operation control, smart government, meteorological ecology, and enterprise energy was 8.36/2.29/7.42/3.82/231 million yuan respectively, with year-on-year growth rates of 16%/61%/107%/102%/112%, respectively. Net operating cash flow was $125 million, an increase of $154 million over the same period last year. 2024Q1, the company achieved revenue of 419 million yuan, +56% over the same period, mainly due to the company's continued deepening implementation of the group-based and ecological development strategy and continuing to strengthen its main business market development on various industry segments within the group; net profit to the mother was 0.2 billion yuan, -62% year-on-year, mainly due to an increase in minority shareholders' profit and loss in the first quarter of '24, as well as an increase in personnel and fixed expenses as a result of the company's expansion in the first quarter of '24.
Driven by horse racing mechanisms, technical capabilities are constantly being enriched, and the first growth curve is high. Based on common infrastructure and basic platforms, combined with the business characteristics of various industries, the company has integrated and built a series of industry application platforms. Each of these platforms targets the application needs of industries such as special fields, space surveying and operation control, smart government, meteorological ecology, and enterprise energy.
(1) For applications in special fields, a GEOVIS+ special field platform integrating general data, scheduling and control, business production services and test training services in special fields has been built to achieve functions such as unified gathering, spatio-temporal correlation, organizational management, integrated analysis, sharing and distribution, and visual expression of different types of data information in special application environments. In the field of electromagnetic information processing, we have built industrial capabilities for the entire process from basic electromagnetic hardware to signal big data fusion analysis and processing, covering the entire life cycle of electromagnetic data collection, sensing, processing, carrying, display, and application. Relying on electromagnetic observation networks, focusing on electromagnetic activity sensing and safety, integrating multiple data, we create and continuously iterate an electromagnetic activity intelligent marking system (E-AIMS) to provide users with equipment, data applications and services around high-value information.
(2) For the field of space surveying, operation and control systems and services, the “Insider” series of products has been formed, including the Insider basic platform and various Insider application platforms such as Tianlu, Sky Control, Tiansense, and Sky Simulation.
(3) For applications in the meteorology, marine, ecology, space weather and other industries, relying on core technologies such as multi-source satellite remote sensing inversion and processing, adaptive weather forecasting with variable resolution, artificial intelligence short-term weather forecasting, mid-term weather forecasting models, and the self-developed “eTapes” multi-field comprehensive meteorological technology platform, it is seamlessly connected to the GEOVIS+ meteorological application platform, which can be combined with users' personalized business needs and different application scenarios to provide users with customized technology development and services.
(4) Continue to develop a consolidated GEOVIS+ smart application platform for applications in industries such as emergency response, water conservancy, natural resources, agriculture, forestry, transportation, and smart cities. By building a spatio-temporal data governance and storage system, an intelligent spatio-temporal information analysis and calculation system, and a digital twin scenario expression and decision-making system, it provides solid spatio-temporal foundation support and intelligent decision support for new government governance and new digital intelligent city construction.
The second growth curve entered the harvest phase early. In 2023, the second growth curve business received 20,914 certified individual developers and 21,192 enterprise certified developers. The developers built 13,769 active ecological applications based on the digital Earth's online capabilities, reached a total of 45.55 million end users, achieved revenue of 208.041 million yuan, completed the verification of the second growth curve scenario, and entered the harvesting stage early.
Construct multi-layer observation data. The company senses and obtains multi-source heterogeneous spatiotemporal data in the electromagnetic sphere, atmosphere, hydrosphere, biosphere, and lithosphere through the “sky, front, air, earth, and sea” integrated multi-layer Earth observation system. It has multi-dimensional attributes such as time, space, scale, and frequency, and establishes a unified system standard for multi-layer data construction. The Beidou grid code is used to organize large-scale spatio-temporal data, establish a unified spatio-temporal benchmark, standardize, organize and manage data, and achieve data integration, integration, and commercialized processing. Combining high-performance service technologies such as parallel computing, “basic+topic” is used as the processing framework to combine “a global basic map” with “multi-layer thematic data” to create a digital earth where fiction and reality coexist, providing rich and diverse data support for the “computable digital earth”.
The low-altitude economy will bring new growth drivers to the company's future development. The company targets strategic emerging industries in the low-altitude economy, explores operating models, and serves applications such as transportation, logistics, agriculture, inspection, rescue and tourism. As the low-altitude economy is upgraded to a national strategy, policy+ industry is continuously promoting the implementation of the “low-altitude economy +” application scenario, and important scenarios such as tourism, logistics, urban management, and transportation are becoming more and more abundant. With technological advancements, cost reductions, and policy support, the low-altitude economy will be commercialized on a larger scale in the next few years, and the market size will further increase with consumer acceptance, safety standards, infrastructure construction, and operational efficiency. With the drastic increase in the number of aircraft, especially unmanned aerial vehicles, and the improvement of collection performance, the application scenarios for space information will increase more and more, forming sophisticated application requirements in various fields such as agricultural monitoring, urban management, and environmental monitoring.
Profit forecasts and investment recommendations. We believe that with the continuous implementation of the company's clustering and ecological strategies, the company continues to expand the downstream market, and the “horse racing mechanism” promotes the continuous development of the first growth curve; the company has built a multi-dimensional and comprehensive data system, data resources have been greatly improved, the online digital planet continues to develop, and the second growth curve for the C-side has entered the harvest period ahead of schedule. Driven by policies such as the low-altitude economy and data factors, the company is expected to usher in new development opportunities. We expect the company's revenue for 2024-2026 to be 38.01/53.36/7.235 billion yuan, respectively, net profit to mother of 4.96/66/ 887 million yuan, and EPS of 1.36/1.83/2.35 yuan respectively, giving the 2024 dynamic PE 45-55 times, and a 6-month reasonable value range of 61.15-74.74 yuan, with a “superior to the market” rating.
Risk warning. The company's business progress falls short of expectations, and industry policy risks.