Incidents:
In April 2023, the company released its 22-year annual report & 23-quarter report. The company achieved revenue of 1,376 million yuan in '22, a year-on-year decrease of 8.59%; it achieved net profit of 18 million yuan, a year-on-year decrease of 88.76%. Affected by the epidemic and weakening downstream demand in '22, the company's performance fell short of expectations. 23Q1 achieved revenue of 232 million yuan, an increase of 55.94% over the previous year; losses were 15 million yuan, and the 23Q1 company's losses were drastically reduced.
The development of the company's smart hardware business fell short of expectations in '22, and the new business continued to achieve rapid growth. In '22, the company's equipment sales revenue was greatly affected by the sharp price increase of various raw materials, the impact of real estate industry regulation on new construction projects, and the repeated impact of the domestic epidemic. The profit side declined significantly due to the decline in revenue. New businesses such as cloud hosting, jet parking, and time span replacement continued to grow. In '22, the company's parking cloud hosting business achieved more than 9,000 online hosting service lanes, corresponding to more than 2,400 parking lots; Jet Parking has signed more than 31,000 smart parking lots, covering more than 10,000 new parking lots, reaching nearly 100 million car owners online (more than 20 million new users in '22); the amount of new parking time contracts signed for parking time and parking fee services amounted to 145 million yuan.
The company's new business grew rapidly in 23Q1, and the number of new business orders signed increased 68% year-on-year. The 23Q1 company's new business orders grew rapidly. Among them, new orders for innovative businesses, including cloud parking lot hosting, smart parking operation business, parking time business, etc., increased 68% year on year; at the same time, market demand for traditional smart hardware business also showed a restorative increase, with new orders increasing 15% year on year.
The company will steadily promote new business in '23. The target new business revenue increased by more than 40% year on year. In '22, the company's new business achieved a total sales revenue of 340 million yuan, +29.87% year-on-year. New business revenue accounted for more than 25% of the company's revenue for the first time, and the company's goal of achieving new business growth of more than 40% year-on-year in '23, increasing its share to more than 30%.
Profit Forecasts, Valuations, and Ratings
We expect revenue for 23-24 to be 1,59/1.83 billion yuan respectively (original value was 2,02/2.43 billion yuan), Guimu's net profit was 196/26 million yuan (original value was 302/395 million yuan), revenue for 25 years was 2.06 billion yuan, net profit of 330 million yuan, and CAGR of 162.44%. The EPS is 0.30/0.40/0.50 yuan/share, respectively, and the corresponding PE is 33/25/20, respectively. We maintained our target price of 15.5 yuan and maintained our “buy” rating.
Risk warning:
The pace of cloud hosting development has fallen short of expectations, the competitive landscape has deteriorated again, and there is a risk of impairment of accounts receivable