Outstanding performance, smooth project acceptance and market development

The company will increase market development, actively promote the progress of project implementation and acceptance, and achieve a turnaround from losses to profits. 2023H1, the company's operating income was 691 million yuan, an increase of 54.59% over the same period last year; the net profit of returning to the mother was 53 million yuan, an increase of 206.73% over the same period last year; and the net profit of non-return was 42 million yuan, an increase of 166.65% over the same period last year. The double growth of revenue and profit of the company is mainly due to the increase of project acceptance during the reporting period, the increase of market expansion and the improvement of delivery efficiency. In addition, the company's sales expenses increased by 34.01% year-on-year, mainly due to increased sales expansion in the current period; management expenses increased by 9.5% year-on-year; R & D expenses increased by 1.69% year-on-year; and financial expenses increased by 47.47% year-on-year, mainly due to the reduction of interest income in the current period. With the deepening of the construction of digital China, two-dimensional to three-dimensional evolution, digital city, digital twins, meta-universe and other applications are developing rapidly, the company is expected to maintain a strong growth momentum.

Actively expand and comprehensively open the second growth curve

Based on the world's leading technology and market advantages, the company actively expands its business territory around the upstream and downstream of the GIS industry chain, facing G-side and B-side applications synchronously.

(1) enter into the field of remote sensing production, create remote sensing GIS integration, and release the latest cross-platform remote sensing GIS integration software independently developed in China. Compared with similar software, the time is reduced by 30% to 70%. The performance improvement of the whole process of remote sensing images is 50% shorter than that of similar software. (2) rapidly expand the sales force of the growth business and actively expand the application fields of strong GIS government beyond natural resources. In the aspect of water conservancy, the bid-winning Digital Twin three Gorges Simulation engine Project, Shandong Yellow River Regulation and Protection Information platform Optimization and upgrading Project, Shaanxi Wisdom Yellow River Project GIS procurement and other projects. In terms of meteorology, the company participated in the national scientific and technological innovation 2030 color-a major project of "New Generation artificial Intelligence", "Agricultural catastrophe risk Integrated Intelligent Analysis and decision Research" project, completed the research and development of agricultural catastrophe risk analysis and intelligent decision service platform, and deployed and operated in the big data cloud platform of the National Climate Center. In agriculture, the subsidiary Nanjing Guotu bid-winning orders continue to land, covering Nanjing, Changzhou and other 15 places or under the jurisdiction of cities and counties; subsidiary Beijing Antu constructed the field director system wisdom management platform. In terms of housing construction, the company won the bid Hengyang real estate management information system upgrade project, Yiwu termites GIS management platform, Xihu District CIM platform and other projects. (3) develop TO B business and rapidly expand B-end application services such as Smart Airport, Wisdom Park and Map Hui. 2023H1, the company participated in the construction of Wuhan Tianhe Airport, Lanzhou Zhongchuan International Airport, Shenzhen Airport and other smart airport projects, participated in Lianyungang Petrochemical Industrial Park project, Baotou Aluminum Industrial Park Wisdom Park project and other smart park projects. The contract value of Tappu Hui increased by about 164% compared with the same period last year, and the renewal rate of major customers reached more than 90%. As a leader in the GIS software industry, the company gives full play to the pulling role of GIS basic software on the industry, constantly expanding the boundary of GIS application, and the second growth curve is becoming clearer.

Go up against the wind, "AI+ Xinchuang + data elements" multiple retransmission

With the further development of digital China, the company ushered in the opportunity of multiple superposition of "AI+ Xinchuang + data elements". The main contents are as follows: (1) seize the opportunity of AI large model, and study almost all the hot directions of AIGC and large model, such as CV large model, NLP large model, multimodal large model and so on. For CV model, SuperMapGIS 2023 released in June has integrated SAM visual model; for NLP model, the company has developed two projects: natural resources knowledge question and answer assistant and hypermap product support question and answer assistant; and for multi-modal large model, developed an integrated application project of adaptation planning business, enabling business such as comparison map and planning concept map before and after rural transformation. (2) GIS basic software has become the core supporting software in the field of information innovation, creating an independent and controllable domestic GIS platform. 2023H1, the newly signed Xinchuang contract is 86.15 million yuan, an increase of 54% over the same period last year. The company has increased the expansion of energy, communications, aerospace, transportation and other fields, winning the bid of the National Pipe Network Group, China Huaneng, China Railway Construction Corporation and other users of GIS-related projects. (3) the company continues to develop spatial data governance tools to provide data lifecycle management for the industry. 2023H1, company big data related contract value increased 47% year on year, participated in Shanghai, Hangzhou, Zhengzhou, Linqing, Wuhu, Zhangjiagang, Luzhou, Ankang, Baise, Baiyin, Fuxin, Wuhan, Yichang and other places big data project. Based on the advantages of the main business, the company actively embraces the opportunities of the times such as AI, Xinchuang and data elements, or will usher in a new development by leaps and bounds.

Profit forecast

From 2021 to 2023, the income of the forecast company is 19.95,24.93,3.117 billion yuan respectively, and the EPS is 0.57,0.74,0.98 yuan respectively, and the current stock price corresponding to PE is 35.9,27.5,20.8 times respectively. As a leading enterprise in the field of GIS software, the company has a global leading advantage in GIS technology and market. Based on its own advantages, the company will actively expand its business layout and benefit from the opportunities of the times such as Xinchuang and data elements, or will comprehensively open a new growth curve and usher in great-leap-forward development, covering and giving a "buy" investment rating for the first time.

Risk hint

Macroeconomic pressure, the promotion of data elements by innovation policy is not as expected, new technology and product research and development is not as expected, market competition is intensified, and so on.