occurrences
The company released the “2023 Semi-Annual Report” after the market closed on August 28, 2023.
Comment:
Operating income was basically the same. Increased investment led to a decline in net profit not attributable to parent. In the first half of 2023, the company achieved operating income of 1471,5064 million yuan, an increase of 0.79% over the previous year; realized net profit of 306.604 million yuan, a year-on-year decrease of 92.30%, mainly due to large non-recurring profit and loss in the same period last year; net profit of 12.5374 million yuan, a year-on-year decrease of 75.22%.
On the one hand, R&D expenses have increased due to the company's increase in R&D investment in the AIGC field this year. On the other hand, due to the company's higher investment in business development compared to last year, and the overall downstream recovery is slow, demand falls short of expectations, resulting in underutilization of some personnel and related management costs. The company's main business gross margin was 29.72%, which is basically the same as 29.57% in the same period last year.
The business structure continues to be optimized, and autonomous software accounts for more than half
By business breakdown, industrial digital business revenue was 407 million yuan, up 14.95% year on year; financial digitization business revenue was 344 million yuan, up 3.09% year on year; pan-ERP business revenue was 527 million yuan, up 1.93% year on year; IT outsourcing business revenue was 188 million yuan, down 23.39% year on year. The proportion of the company's independent software products business reached 51.04%. Compared with 47.11% in the same period last year, the company's strategy to strengthen its own software business is still being implemented effectively. Affected by the general economic environment, demand from downstream customer groups for ITO has been declining in the short term, so the ITO business continued the trend of the fourth quarter of 2022 and experienced a sharp decline.
Deeply involved in the industry and accumulated high-quality customers, the technology platform has been widely recognized. The company has been engaged in enterprise digital consulting and implementation services for a long time, serving more than 6,000 enterprise customers. In recent years, it has served more than 300 of China's top 500 enterprises and more than 100 of the world's top 500 enterprises, and has accumulated a high-quality customer base. Hande's independent software products are built based on Hande's independent integrated technology center HZERO. HZERO is a completely autonomous and controllable technology system that provides a large number of pre-configured general technical components, and also incorporates many mainstream ecological technologies, so that the efficiency of product incubation and customized development can be greatly improved. After years of accumulation and promotion, the popularity and acceptance in the market is also getting higher and higher. Customers choose Hande's own products, not only application software, but also HZERO technology platforms.
Profit forecasting and investment advice
The company is concentrating on building an integrated center, and the revenue share of independent products has gradually increased. It has begun a new path of growth, and space for continued growth in the future is gradually opening up. Referring to the business situation for the first half of the year, the company's revenue forecast for 2023-2025 was adjusted to 34.58, 41.05 million yuan, and 4.813 billion yuan, adjusted to the adjusted gross profit forecast to 2.15, 330, and 449 million yuan, EPS was 0.22, 0.34, and 0.46 yuan/share, and the corresponding PE was 39.46, 25.71, and 18.87 times. Maintaining a “buy” rating considering the company's layout in new directions such as AIGC and the company's future continued growth.
Risk warning
Risk of macroeconomic fluctuations; risk of rising human resource costs; risk of technological innovation.