Performance performance

On October 29, 2024, the company released the 2024 three-quarter report

1. [Overall Performance]

(1) 24Q1-Q3 revenue of 48.422 billion (+25.21%), net profit attributable to mother - -0.127 billion, net profit not attributable to mother - -0.341 billion.

(2) 24Q3 single-quarter revenue of 15.172 billion (+26.94%), net profit attributable to mother -0.089 billion, net profit not to mother -0.252 billion.

2. [Gross profit margin, cash flow] 24Q1-Q3 gross profit margin was 9.13%, down 1.65pct year on year; 24Q3 single quarter gross profit margin was 8.23%, down 2.82pct year on year.

(2) 24Q1-Q3 net cash flow from operating activities - -2.363 billion; 24Q3 net cash flow from operating activities 0.478 billion in a single quarter.

3. [Cost rate]

(1) 24Q1-Q3 sales/management/R&D expense ratio 1.55%/2.76%/3.24%, sales expense ratio decreased by 0.27 pct year on year, management cost ratio decreased by 0.50 pct year on year, R&D cost rate decreased by 0.05 pct year on year.

(2) 24Q3 single quarter sales/management/R&D expense rate 1.86%/2.85%/3.58%, sales expense ratio decreased by 0.17 pct year on year, management cost ratio decreased by 0.99 pct year on year, and R&D cost rate decreased by 0.02 pct year on year.

Note: The above growth rate uses yoy as a year-on-year ratio

Performance reviews

Revenue remains high and expenses continue to shrink

On the revenue side, the company's Q1-Q3 revenue maintained rapid growth, reaching 25.21% year on year, and the Q3 revenue growth rate was 26.94%. On the cost side, the company's expense ratio continued to decline. We believe that as the company's data innovation business continues to deepen and revenue continues to grow, it is expected that profits will continue to grow through a steady management policy throughout the year.

Profit forecasting and valuation

We predict that the company will achieve revenue of 63.002/71.276/81.524 billion yuan in 2024-2026, with year-on-year growth rates of 11.94%/13.13%/14.38%, respectively, corresponding net profit of 0.4/0.484/0.637 billion yuan, corresponding year-on-year growth rates of 21.21%/21.26%/31.55% for 24/25/26, respectively, and 0.35/0.43/0.56 yuan for PE 43.81/33.30 times Maintain an “Overweight” rating.

Risk warning

Macroenvironmental risks, risk of policy implementation falling short of expectations, and R&D investment affect the company's overall operating performance.