Events:
According to the third-quarter report released by China Information in 2023, the operating income in the first three quarters was 6.618 billion yuan, down 7.77% from the same period last year; the net profit from home was 87 million yuan, down 27.92% from the same period last year; the net profit from deducting non-return was 46 million yuan, down 47.95% from the same period last year; and the gross profit margin was 16.69%, down 0.52pct from the same period last year. In a single quarter, the operating income in the third quarter was 2.371 billion yuan, down 13.20% from the same period last year; the net profit from home was 5.88 million yuan, up 31.43% from the same period last year; and the net profit from non-return was-7.83 million yuan, down 268.94% from the same period last year.
Focus on financial technology, the number of soft service contracts is high.
The company's financial technology strategy continued to advance, and the financial industry achieved an operating income of 3.264 billion yuan, an increase of 6.15% over the same period last year, of which financial soft service revenue was 2.059 billion yuan, an increase of 21.20% over the same period last year. The net amount of contracts signed by the financial industry reached 3.277 billion yuan, an increase of 7.24 percent over the same period last year, of which the net signing of financial soft services reached 2.27 billion yuan, an increase of 20.94 percent over the same period last year. The company has sufficient orders on hand, and the financial soft service has signed and not sold 1.85 billion yuan, an increase of 30.43% over the same period last year.
A number of banks have been shortlisted in the Xinchuang integration project to promote the application of data elements in the field of financial Xinchuang and solutions. the company provides complete "soft + hard" integration and "end-to-end" Xinchuang transformation overall solution. In the first three quarters of 2023, the company was successfully shortlisted for infrastructure integration procurement projects for customers such as China CITIC Bank Corporation and Postal Savings Bank of China, and signed contracts with customers such as Bank of Communications, Bank of China Ltd., China Development Bank, Bank of Beijing, Bank of Tianjin, Bohai Bank, Jilin Agricultural Credit, Xinhua Life Insurance and Galaxy Securities.
On October 25, Shenzhou Information, China Digital Group and Anhui Credit Information jointly held a strategic cooperation signing ceremony. On the premise of legal compliance in the application of data assets, Shenzhou Information and Anhui Credit Information will give full play to their complementary advantages in technology and cross-ecological scenario data, and jointly explore the scenario application of credit data to better serve the real economy through model innovations such as digital production and cloud financing.
Earnings forecast, valuation and rating
Taking into account the macro environmental impact and the company's focus on financial technology, we estimate that the company's operating income from 2023 to 2025 will be 124.19, 13807, and 15.583 billion yuan respectively (the original value is 132.26, 147.39 / 16.536 billion), with a corresponding growth rate of 3.49%, 11.18% and 12.87%, respectively. The net profit of homing is RMB 308Universe 469, respectively (the original value is RMB 358, 501), with a corresponding growth rate of 48.96%, 52.47%, 34.86%, 0.31, 0.48 and 0.64 per share, respectively, and CAGR for 3 years is 45.23%. In view of the fact that the company is a leading partner in financial digital transformation, benefiting from the accelerated process of bank digital transformation, with reference to the comparable company valuation, the company is given a 2024 PE valuation of 28 times, with a target price of 13.35 yuan, maintaining an "overweight" rating.
Risk tips: systemic risk, market competition aggravates risk, products and technologies are not as expected, and downstream demand is insufficient.