GRG Banking(002152) 东方证券·2024-03-23 16:00Investment Rating - The report gives a "Buy" rating for the company, with a target price of 15.84 CNY based on a 36x P/E ratio for 2024 [1][3]. Core Views - The company is a leader in the digital economy under the Guangzhou state-owned assets, focusing on fintech and urban intelligence, with a strong presence in the AI elements of algorithms, computing power, data, and scenarios [1][9]. - The company has maintained its position as the largest supplier of intelligent financial self-service equipment in China for 15 consecutive years, with a steady revenue growth of 10.98% year-on-year in 2022, reaching 7.526 billion CNY [1][12]. - The digital infrastructure and data resource system are recognized as the two foundational elements of digital China, with ongoing government support and policy initiatives to promote their development [1][20]. - The company is actively participating in the construction of data exchanges and smart computing centers, aiming to leverage data elements and computing power to become a frontrunner in the digital economy [1][12]. Summary by Sections Company Overview - The company, founded in 1999 and controlled by Guangzhou Digital Technology Group, focuses on intelligent financial, public safety, and smart transportation solutions, achieving significant growth in the digital economy [9][12]. - It has a stable shareholding structure, with the largest shareholder holding 50.01% of the shares [9][12]. Financial Performance - The company reported revenues of 75.26 billion CNY in 2022, with a net profit of 8.27 billion CNY, showing a slight increase of 0.37% year-on-year [1][2]. - Revenue is projected to grow to 90.42 billion CNY in 2023, with a year-on-year growth rate of 20.1% [2][17]. - The company has maintained a gross margin around 38% and is focused on reducing operational costs while increasing R&D investments [18][19]. Market and Policy Environment - The digital economy is supported by favorable government policies, with a focus on data element development and public data utilization [20][23]. - The establishment of the National Data Bureau and various policy frameworks are expected to enhance the data resource market and promote digital infrastructure [21][24]. Business Segments - The company operates in two main segments: fintech and urban intelligence, with a balanced revenue contribution of approximately 62.41% from fintech and 37.59% from urban intelligence in 2022 [12][16]. - It is actively expanding its overseas market presence, with international revenues reaching 7.94 billion CNY in the first half of 2023, a growth of 96.33% year-on-year [12][17].