In the first three quarters of 2023, the company achieved revenue of 6.751 billion yuan, a year-on-year increase of 10.87%, of which the third quarter achieved revenue of 2.158 billion yuan, a year-on-year decrease of 2.66%. In the first three quarters of 2023, the company achieved net profit of 400 million yuan, an increase of 10.1% over the same period of the previous year. Among them, net profit for the third quarter was 115 million yuan, a year-on-year decrease of 8.77%. The company's comprehensive gross profit margin for the first three quarters of 2023 was 18.66%, a slight decrease of 0.6% over the previous year. The company's sales expense ratio, management expense ratio, and R&D expense ratio for the first three quarters of 2023 were 3.28%, 2.83%, and 3.64% respectively.
The net cash flow from the company's operations in the first three quarters of 2023 was -2152 million yuan, compared with -1,835 billion yuan for the same period last year. The company's repayments were relatively concentrated in the fourth quarter. The company's contract debt for the first three quarters of 2023 was 346 million yuan, compared to 300 million yuan for the same period last year. The company's business scale continued to expand in the first three quarters, the communication network business maintained steady growth, and the energy network business achieved rapid growth.
The company actively provides customers with one-stop data center operation and maintenance solutions to help advance the country's “Eastern Digital and Western Computing” project and build a first-class intelligent supercomputing center. Currently, the company and partners such as Huawei have implemented supercomputing center projects such as the China-ASEAN Artificial Intelligence Supercomputing Center Project, the Fujian Multi-Station Al Supercomputing Big Data Center, and the Guangdong-Hong Kong-Macao Greater Bay Area Intelligent Computing Center. In the second half of this year, the NVIDIA NVLINK H800/NVIDIA NVLINKA800 computing power server, the intelligent computing power center of Runjian Co., Ltd., has recently officially completed batch listing and delivery to users. Subsequent companies will further deepen partnerships with major partners such as Huawei, procure various brands and types of computing power servers, and promote the further construction of the Intelligent Computing Center of Runjian Co., Ltd. In addition to computing power leasing services, the company also provides integrated management and maintenance services for computing power centers, including computing power construction and computing power operation and maintenance. It is committed to improving the operating efficiency of computing power centers, providing intelligent operation and maintenance platforms for computing power centers, integrating existing dynamic loop monitoring systems, network management systems, and AI computing platforms to create an integrated operation and maintenance management platform.
Runjian Co., Ltd. has actively launched a series of self-developed MR/VR smart devices and digital systems around “VR+ industry applications”, including MR simulation driving training, MR holographic battles, VR training stations, 3D LED interactive screens, AR+ smart city governance, metaversus+smart cultural tourism, etc. The company integrates traditional automation technology with modern new technologies such as 5G, AI, AR, VR, MR, Internet of Things, big data, and cloud computing to help the digital transformation of thousands of industries.
In terms of energy network business, the new energy business continues to increase with the number of new energy power plants connected to the grid, and the new energy management and maintenance business continues to rise; the virtual power plant business continues to expand, and the company's RundoBidder virtual power plant digital scheduling platform won the first prize in the 6th “Bloom Cup” 5G Application Competition Guangdong Regional Competition and the National Finals Excellence Award; in the field of communications integrated energy, energy saving, and energy storage services for operators, the penetration rate of green energy, energy saving, and energy storage services for operators continues to increase, providing operators in many places with integrated wind storage applications, as well as comprehensive energy-saving renovation plans for aircraft buildings and computer rooms, to greatly assist operators Reduce energy consumption for network operation.
[Investment advice]
As a leading digital intelligent operation and maintenance (AIOps) service provider and one of the top 100 software companies in China, Runjian Co., Ltd. is positioned as a manager of communication information networks and energy networks, providing customers with excellent software and hardware technical services and digital solutions. The business covers communication networks, digitalization, IDC, and new energy. We have adjusted our profit forecast for 2023-2025. We expect the company to achieve revenue of 93.88/113.21/13391 billion yuan in 2023-2025, and realized net profit of 4.96/6.94/898 billion yuan, corresponding PE of 22.45/16.04/12.39 times, maintaining the “increase in holdings” rating.
[Risk Reminder]
There is a risk of intense competition among enterprises within the industry;
The risk that AI projects will develop below expectations.