Investment Rating - The report maintains a "Buy" rating for the company [1][12]. Core Views - The company is expected to turn profitable in 2024, driven by AI empowerment in cybersecurity [1]. - The cybersecurity market in China is projected to grow from $11 billion in 2023 to $17.1 billion by 2028, with a CAGR of 9.2% [5]. - The company is positioned to benefit from the growth in AI and cybersecurity demand, with adjusted revenue forecasts for 2025-2027 being 32.19 billion, 37.14 billion, and 41.99 billion yuan respectively [11]. Summary by Sections Recent Performance - For Q1 2025, the company expects revenue between 320 to 340 million yuan, a year-on-year decline of 24.17% to 19.43%, with a net loss of 65 to 75 million yuan, a reduction in loss compared to the previous year [4]. Cybersecurity Business - The cybersecurity revenue for 2024 is projected to be 2.55 billion yuan, a decline of 11.49% year-on-year, but the long-term outlook remains positive due to increasing demand driven by domestic substitution and policy compliance [5]. Cloud Computing - The cloud computing segment is expected to generate 256 million yuan in 2024, reflecting a growth of 10.09% year-on-year, supported by advancements in hyper-converged infrastructure and user experience improvements [6]. Profitability Improvement - The company has improved its net profit margin by 14.84 percentage points year-on-year, with a sales gross margin of 61.04% and a net profit margin of 2.59% [7]. New Product Development - The company is leveraging AI technologies to enhance its product offerings, including the launch of the Tianwen large model system and various AI-enabled products, which are expected to support sustainable growth [9]. Financial Projections - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.15, 0.20, and 0.26 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 48, 36, and 28 [10][11].

Investment Rating - The investment rating for the company is "Buy" with a current price of 7.39 CNY and a fair value of 7.83 CNY [3]. Core Views - The company's performance meets expectations, with significant improvements in quality and efficiency [1]. - The revenue for 2024 is projected to be 2.82 billion CNY, a year-on-year decrease of 9.73%, while the net profit attributable to shareholders is expected to be 0.83 billion CNY, indicating a return to profitability [7][13]. - The company is focusing on enhancing operational efficiency and restoring profitability, with a gross margin of 61.04% in 2024, up 0.85 percentage points from 2023 [21][23]. - The company is strengthening its position in emerging security fields, leveraging AI and self-controlled technologies to enhance its product offerings [20][22]. Financial Performance Summary - **2023A**: Revenue of 3.12 billion CNY, net profit of -0.37 billion CNY - **2024A**: Revenue of 2.82 billion CNY, net profit of 0.83 billion CNY - **2025E**: Revenue of 2.91 billion CNY, net profit of 0.12 billion CNY - **2026E**: Revenue of 3.10 billion CNY, net profit of 0.17 billion CNY - **2027E**: Revenue of 3.40 billion CNY, net profit of 0.23 billion CNY [2][31]. Revenue and Profitability Forecast - The company expects revenues to gradually recover, with projections of 2.60 billion CNY, 2.73 billion CNY, and 2.95 billion CNY for the years 2025 to 2027, respectively [26][29]. - The gross margin is anticipated to improve to 63.5%, 64.1%, and 64.7% over the same period [26][31]. Cost Management - The company has effectively reduced total expenses by 10.73% in 2024, with significant decreases in management and R&D expenses [23][33]. - The management expenses decreased by 40.95% in 2024, primarily due to enhanced management efficiency [30][33]. Emerging Business Development - The company is actively expanding into new security areas, including cloud security and data security, with a focus on AI integration [27][28]. - The company has developed a comprehensive cloud-native security defense system, enhancing its capabilities in multi-cloud environments [27][28].

Investment Rating - The investment rating for Tianrongxin (002212.SZ) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on the company's performance and strategic initiatives [1]. Core Insights - The company achieved a turnaround in net profit, reporting a net profit of 0.83 billion yuan in 2024, a year-on-year increase of 122.35%, indicating a significant recovery from previous losses [2][4]. - Revenue for 2024 was reported at 2.82 billion yuan, a decline of 9.73% year-on-year, with a notable drop in Q4 revenue of 16.15% compared to the previous year [1][2]. - The cloud computing segment showed growth, with revenue increasing by 10.09% to 0.256 billion yuan, while the network security segment saw a decline of 11.49% [2]. - The company is focusing on AI and cloud computing integration, launching the Tianwen Intelligent Computing Cloud Platform, which combines hardware, software, and services [2][4]. Financial Performance Summary - In 2024, the company reported total revenue of 2.82 billion yuan, down from 3.12 billion yuan in 2023, reflecting a year-on-year decrease of 9.73% [4]. - The net profit for 2024 was 0.83 billion yuan, a significant recovery from a loss of 0.371 billion yuan in 2023, marking a year-on-year growth of 122.35% [4]. - The gross margin improved slightly to 61.0% in 2024 from 60.2% in 2023, indicating better cost management [4]. - The company’s EPS (Earnings Per Share) is projected to grow from 0.07 yuan in 2024 to 0.35 yuan by 2027, reflecting a positive growth trajectory [4]. Strategic Developments - The company has made significant investments in R&D, with a focus on enhancing efficiency and integrating AI with security solutions [2]. - The launch of the DeepSeek security intelligent computing unit aims to provide comprehensive solutions for various industries, including government, energy, and healthcare [2]. - The company is also advancing in hyper-converged infrastructure, achieving upgrades in both domestic production and block storage performance [2]. Earnings Forecast - The earnings per share (EPS) estimates for 2025, 2026, and 2027 are projected at 0.15 yuan, 0.25 yuan, and 0.35 yuan respectively, with corresponding P/E ratios of 48.95, 29.66, and 21.21 [2][4].

Investment Rating - The investment rating for Tianrongxin (002212.SZ) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on the company's performance and strategic initiatives [1]. Core Insights - The company achieved a turnaround in net profit, reporting a net profit of 0.83 billion yuan in 2024, a year-on-year increase of 122.35%, indicating a significant recovery from previous losses [2][4]. - Revenue for 2024 was 2.82 billion yuan, a decrease of 9.73% year-on-year, with a notable decline in Q4 revenue of 16.15% year-on-year [1][2]. - The cloud computing segment showed growth, with revenue increasing by 10.09% to 0.256 billion yuan, while the network security segment saw a decline of 11.49% [2]. - The company is focusing on AI and cloud computing integration, launching the Tianwen Intelligent Computing Cloud Platform, which combines hardware, software, and services [2]. - The report forecasts earnings per share (EPS) for 2025-2027 to be 0.15, 0.25, and 0.35 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 48.95, 29.66, and 21.21 [2][4]. Financial Summary - In 2024, the total revenue was 2,820 million yuan, with a projected increase to 3,057 million yuan in 2025, reflecting a growth rate of 8.4% [4]. - The net profit for 2024 was 83 million yuan, with projections of 177 million yuan in 2025, indicating a growth rate of 113% [4]. - The gross margin for 2024 was 61%, with a slight increase expected in subsequent years [4]. - Research and development expenses decreased by 16.42% in 2024, reflecting the company's focus on efficiency [2].

Core Insights - Tianrongxin Technology Group Co., Ltd. reported a revenue of 2.82 billion yuan and a net profit of 83.01 million yuan for 2024, marking a return to profitability with a gross margin of 61.04% [1] - The company's cybersecurity products generated 2.55 billion yuan in revenue, accounting for 90.42% of total revenue, while cloud computing products contributed 256 million yuan, representing a 10.09% year-on-year growth [1] Group 1 - The company has released over 100 types of cybersecurity products and more than 1,000 product models, maintaining the number one market share in the firewall sector for 25 consecutive years [2] - AI has been integrated into all product lines, with new solutions for data classification, data security integration, and DSMM certification [2] - The company has launched cloud-native firewalls and cloud security resource pools, covering over 30 business scenarios [2] Group 2 - The cloud computing product portfolio has been further enhanced, with solutions for hyper-convergence, desktop cloud, and enterprise cloud tailored for various industries [3] - The intelligent computing cloud platform includes software, hardware, and integrated machines, providing a comprehensive solution for business support and security [3] - The company is focusing on new safety measures across multiple emerging fields, including industrial internet, vehicle networking, and low-altitude economy [2]

Summary of Tianruixin's Conference Call Company Overview - **Company**: Tianruixin - **Industry**: Cybersecurity and Cloud Computing Key Financial Performance - In 2024, Tianruixin achieved a turnaround in net profit, reporting a significant increase of 15.48% compared to a substantial loss in 2023 [3] - Excluding goodwill impairment, the net profit grew by 105.45%, rising from 26 million yuan in 2023 to 54 million yuan in 2024 [3] - The gross margin improved for three consecutive years, increasing from 59.72% in 2022 to 61.04% in 2024 [3] Revenue and Product Performance - Cloud computing product revenue grew by 10.09% year-on-year, accounting for 9.06% of total revenue, up from 7.43% in 2023 [5] - Revenue from specialized sectors such as special industries, energy, and healthcare increased by 23.09%, 22.86%, and 17.9% respectively, indicating strong competitiveness in niche markets [7] - Firewall products continue to dominate the Chinese cybersecurity hardware market, nearing a 70% market share, highlighting Tianruixin's leadership in this segment [9] Strategic Developments - The Chinese domestic intelligent computing cloud service market is projected to exceed 400 billion yuan by 2029, with Tianruixin accelerating its development in this area [12] - The company secured multiple projects in public health, emergency response, and meteorology, with a total scale exceeding 300 million yuan, showcasing its competitiveness in government sectors [13] Market Trends and Future Outlook - The global cybersecurity spending is expected to grow from 11 billion USD in 2023 to 17.1 billion USD by 2028, with a compound annual growth rate (CAGR) of 9.2% [8] - The intelligent infrastructure construction is driving rapid growth in cloud computing, with the global RDC spending expected to reach 530 million USD in 2024 [10] - The market for intelligent computing is anticipated to grow significantly, with Tianruixin aiming to achieve over 100 million yuan in revenue from its intelligent computing products [24] Personnel and Operational Changes - The total number of employees decreased by 13.93% from 6,153 at the end of 2023 to 5,296 in 2024, with a notable reduction in technical and management staff [6] - The marketing team saw the addition of 384 high-performing personnel while optimizing 503 positions, indicating a focus on enhancing team efficiency [6] Challenges and Risks - The reduction in low-margin integration projects may impact overall revenue despite growth in cloud computing [5] - Increased competition in the cybersecurity market poses risks, particularly as the demand for firewall products continues to rise [9] - The company must navigate potential challenges related to technological innovation and market changes [3] Conclusion - Tianruixin's financial turnaround and strategic focus on cloud computing and intelligent services position it well for future growth, despite facing competitive and operational challenges in the cybersecurity landscape.

Group 1: Financial Performance - In 2024, the company's revenue was 2.82 billion CNY, a decrease of 9.73% year-on-year [3] - The net profit attributable to shareholders was 83.01 million CNY, recovering from a loss of 371.40 million CNY in the previous year [3][4] - Excluding goodwill impairment, the net profit increased by 15.48% year-on-year, and the net profit after excluding non-recurring gains and losses grew by 105.45% [4] Group 2: Revenue Quality and Cost Control - The gross profit margin improved from 59.72% in 2022 to 61.04% in 2024, indicating a continuous enhancement in revenue quality [4] - Total expenses decreased to 1.70 billion CNY in 2024, down 10.73% year-on-year [4] - R&D expenses fell by 16.42%, while management expenses dropped significantly by 40.95% [4] Group 3: Product Performance - Revenue from cybersecurity products was 2.55 billion CNY, accounting for 90.42% of total revenue, a decline of 11.49% [5] - Cloud computing product revenue reached 256 million CNY, representing 9.06% of total revenue, with a growth of 10.09% [5] - The company reduced low-margin projects, contributing to a decrease in overall revenue by approximately 300 million CNY [5] Group 4: Market Trends and Future Outlook - The Chinese cybersecurity market is projected to grow from 11 billion USD in 2023 to 17.1 billion USD by 2028, with a compound annual growth rate (CAGR) of 9.2% [12] - The global ICT market is expected to reach 6.9 trillion USD by 2028, driven by the demand for AI and intelligent infrastructure [12] - The company anticipates a net profit loss of 65 million to 75 million CNY in Q1 2025, with a projected revenue of 320 million to 340 million CNY, reflecting a year-on-year decrease of about 22% [10] Group 5: Strategic Initiatives and Team Optimization - The total number of employees decreased by 13.93% to 5,296 by the end of 2024, with significant reductions in technical and management staff [9] - The company aims to enhance its network security capabilities and AI integration in product offerings [19][20] - The company plans to strengthen its cloud computing segment, targeting to achieve at least half of the revenue from the security segment [22]

Core Viewpoint - Tianrongxin achieved a turnaround in profitability for 2024, despite a decline in total revenue, indicating effective cost control and operational efficiency improvements [2][8]. Group 1: Operating Performance - The total operating revenue for Tianrongxin in 2024 was 2.82 billion yuan, a year-on-year decrease of 9.73%. However, the net profit attributable to shareholders reached 83.01 million yuan, an increase of 122.35% year-on-year. The net profit after deducting non-recurring items was 53.95 million yuan, up 112.94% year-on-year [2]. - In Q4, the total operating revenue was 1.238 billion yuan, down 16.15% year-on-year, but the net profit attributable to shareholders was 252 million yuan, a significant increase of 304.97% year-on-year. The net profit after deducting non-recurring items was 239 million yuan, up 255.73% year-on-year, indicating a strong year-end rebound [3]. Group 2: Financial Indicators - Gross margin was 61.04%, an increase of 1.41% year-on-year. Net margin was 2.95%, up 124.85% year-on-year. The ratio of operating expenses to revenue was 37.43%, an increase of 2.76% year-on-year. Earnings per share were 0.07 yuan, an increase of 122.45% year-on-year [9]. - The net cash flow from operating activities decreased by 49.95% year-on-year, primarily due to tightened procurement budgets from downstream customers, leading to slower collections. Accounts receivable stood at 2.589 billion yuan, representing 3118.44% of profit, indicating significant pressure in accounts receivable management [5]. Group 3: Cost and Expenses - Management expenses decreased by 40.95% year-on-year, attributed to improved management efficiency and reduced share-based payment expenses. Financial expenses decreased by 224.09%, mainly due to reduced amortization of lease liabilities and no borrowing activities. R&D expenses decreased by 16.42%, as the layout of R&D investments was largely completed [10]. Group 4: Industry Outlook and Company Strategy - 2024 marks the 30th anniversary of China's full-function access to the international internet. As one of the earliest established cybersecurity companies in China, Tianrongxin plans to focus on domestic production, industry specialization, service enhancement, and intelligence in its operations. The company aims to become a leading provider of cybersecurity and intelligent cloud solutions by 2025, empowering digital and intelligent transformation across various industries [6].

Core Viewpoint - Tianruixin (002212) reported a net profit increase of 122.35% for 2024, despite a decline in total revenue of 9.73% to 2.82 billion yuan [1][3]. Financial Performance - Total revenue for 2024 was 2.82 billion yuan, down from 3.124 billion yuan in 2023, representing a decrease of 9.73% [3]. - The net profit attributable to shareholders reached 83.01 million yuan, a significant increase of 122.35% compared to a loss of 371 million yuan in 2023 [3]. - The fourth quarter revenue was 1.238 billion yuan, down 16.15% year-on-year, while the net profit for the same period was 252 million yuan, up 304.97% [1]. - Gross margin improved to 61.04%, up 1.41% year-on-year, while net margin was 2.95%, a substantial increase of 124.85% [3]. Cost and Expenses - Total operating expenses (sales, management, and financial expenses) amounted to 1.056 billion yuan, accounting for 37.43% of revenue, an increase of 2.76% year-on-year [3]. - Management expenses decreased by 40.95% due to improved efficiency and reduced share-based payment costs [3]. - Financial expenses saw a significant reduction of 224.09%, attributed to decreased lease liability financing costs and lower interest from borrowing [3]. Cash Flow and Assets - Cash flow from operating activities decreased by 49.95%, primarily due to slower customer payments and reduced cash receipts from sales [3]. - Cash and cash equivalents dropped to 666 million yuan, a decrease of 30.45% from the previous year [3]. - The company's receivables increased by 6.10% to 2.589 billion yuan [3]. Market Position and Analyst Expectations - Analysts had previously expected a net profit of around 220 million yuan for 2024, indicating that the actual results fell short of expectations [1]. - The average earnings per share for 2025 is projected to be around 0.15 yuan, with an expected net profit of approximately 183 million yuan [4].

Group 1 - The core viewpoint of the news is that Tianrongxin (002212.SZ) has reported its annual results for 2024, highlighting the shareholding structure among institutional investors as of April 18, 2025 [1] - A total of 160 institutional investors disclosed holding Tianrongxin A-shares, with a combined holding of 183 million shares, representing 15.53% of the total share capital [1] - The top ten institutional investors collectively hold 14.00% of the shares, with a decrease of 2.23 percentage points compared to the previous quarter [1] Group 2 - In the public fund sector, five funds reported a decrease in holdings compared to the previous quarter, with a total reduction of 0.35% [2] - A total of 151 new public funds were disclosed during this period, including several major funds such as Huaxia CSI 1000 ETF and GF CSI 1000 ETF [2] - Regarding foreign investment, one foreign fund, Hong Kong Central Clearing Limited, reported a slight decrease in holdings compared to the previous quarter [2]