The company's performance in 2023 showed a steady rise, with impressive results in the first quarter of 2024.

The company recently released its annual report for 2023 and the first quarter report for 2024. In 2023, the company achieved a revenue of 770 million yuan, a slight rise of 0.1% year-on-year; the net profit attributable to the parent company's shareholders reached 80 million yuan, a year-on-year increase of 3%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 70 million yuan, a year-on-year increase of 19%. The performance in the first quarter of 2024 was even more impressive, with a revenue of 260 million yuan, a substantial rise of 57% year-on-year; the net profit attributable to the parent company was 40 million yuan, a year-on-year increase of 130%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 40 million yuan, a year-on-year increase of 148%.

From the perspective of the overall business composition in 2023, the company's two main businesses have both shown a good development trend:

1. Network visualization business: Although revenue decreased by 9% year-on-year to 380 million yuan, the gross profit margin increased to 64%, an increase of 8 percentage points compared to the previous year. The decline in revenue was mainly due to some projects failing to meet revenue recognition criteria within 2023. However, the company's winning share in procurement projects from key clients continues to rise, and the order situation is good, laying a foundation for performance growth in 2024.

2. Intelligent system platform business: Revenue rose by 13% year-on-year to 390 million yuan, with a slight increase in gross profit margin of 0.6 percentage points to 29%. The business growth was mainly attributed to the improvement in the supply chain situation and the commissioning of new intelligent manufacturing bases. The increase in the proportion of high gross profit margin products further promoted the overall profitability.

It is worth noting that the company's contract liabilities at the end of 2023 increased significantly to 540 million yuan, a rise of 4121% compared to the end of the previous year. This change is primarily due to the receipt of advance contract payments from customers, reflecting strong downstream demand, and the company has ample orders on hand, providing strong support for future revenue growth.

The financial data for the first quarter of 2024 shows that the gross profit margin for the single quarter is 35%, a decrease of 11 percentage points compared to the full-year level of 2023; as of the end of the first quarter, contract liabilities amounted to 480 million yuan, a decrease of 60 million yuan from the end of 2023. These changes may suggest that the company's emerging computing power business began to contribute revenue in the first quarter, marking the official entry of the company's third growth curve into the expansion phase.

Looking ahead, the company, as a leading provider of network visualization and intelligent system platforms in the country, is poised for a significant product and technology rollout. With the continuous rise in demand for artificial intelligence computing power and the increasing importance of data elements, the company is expected to achieve rapid growth. It is anticipated that from 2024 to 2026, the company's operating revenue will reach 1.3/1.8/2.3 billion yuan, and the net profit attributable to the parent company will reach 250/330/420 million yuan.

However, investors still need to be vigilant about potential challenges such as intensified market competition, downstream demand affected by policies, and supply chain risks.