Q3 income is growing steadily. In the first three quarters, the company achieved revenue of 960 million yuan, an increase of 31% over the same period last year, and its net profit was 10 million yuan, an increase of 280.6% over the same period last year. The deduction of non-return to the mother was-2 million yuan, an increase of 76.6% over the same period last year. In the third quarter alone, the income reached 460 million yuan, an increase of 32% over the same period last year, and the net profit of returning to the mother was 61 million yuan, an increase of 22.6% over the same period last year. 56 million yuan was deducted from the non-return of the mother, an increase of 20.8% over the same period last year. From the revenue side, revenue in the areas of smart finance and government procurement increased more than the same period last year, of which non-tax and electronic bills business maintained steady growth, e-procurement and budget integration business maintained rapid growth, both of which were in a trend of rapid development due to the layout of the previous period. From the profit point of view, the gross profit margin in the first three quarters was 59%, down 3 percentage points from the same period last year, and the rates of sales, management and R & D expenses decreased by 2.2%, 4.7% and 0.9% respectively, mainly because the growth of staff wages and salaries was slower than the growth rate of income. the company has issued several incentive plans since its listing to increase employee compensation.

Financial indicators are good, optimistic about the future growth potential. As the company's main business target is provincial finance and the company's business is the current "rigid demand" of the government, the quality of the overall report is relatively high, showing a steady growth trend in many 2G companies, with a 30% increase in revenue and a sales rebate of 1.05 billion yuan. an increase of 44.5% over the same period last year, and the cash / revenue ratio received from the sale of goods and services was 109%. Inventory 166 million yuan, mainly for the cost of unsettled projects, an increase of 183% over the same period last year. The high level of this indicator indicates that there is sufficient potential for future growth.

Be optimistic about the business layout of the company. At present, the business layout of the company is mainly divided into smart financial business, e-procurement business and smart city and digital rural business. In terms of the proportion of income, intelligent finance accounts for a relatively high proportion, followed by e-procurement. Smart city and digital countryside are in a state of layout. In the field of intelligent finance and finance, it is divided into traditional non-tax system construction and budget integration project construction, both of which are rigid demand business of government finance, and budget integration business has become the leading enterprise in China. help the Ministry of Finance and many provinces to achieve orderly budget management In the field of e-procurement, it has developed a business layout dominated by government procurement, supplemented by university procurement and enterprise procurement, in which government procurement focuses on major policy and fiscal expenditure 61, making policy procurement more transparent and efficient. In the future, under the background of big finance, the company's budget integration business and e-procurement business are expected to burst out strong vitality and promote a new round of growth of the company.

Risk hints: the impact of the epidemic on bidding and delivery progress; the intensification of competition in the budget integration platform; the intensification of competition in e-procurement; the operation business is not as expected; and the IT budget of downstream customers is insufficient.

Investment advice: maintain a buy rating.

It is estimated that the net profit from 2022 to 2024 will be 2.83 GUBG 3.89 / 524 million yuan, a year-on-year growth rate of 23.5 GBP 37.7%; diluted EPS=0.47/0.65/0.87 yuan, and the current stock price corresponds to PE=42.2/30.6/22.8x. The company is the leader of financial information for 20w, maintaining the "buy" rating