Apex(SH:603383) Xin Lang Cai Jing·2025-04-13 10:24Core Viewpoint - The company's performance in 2024 is under pressure due to market conditions, but there is optimism for improvement in subsequent performance as downstream demand has improved since Q4. The core system "Xinchuan" is accelerating, with a successful bid for Everbright Securities setting a benchmark case, and the AI digital technology platform has been fully upgraded [1]. Investment Highlights - The rating is maintained at "Buy". Despite market fluctuations in 2024, the recovery in industry demand since Q4 is noted, although there is a delay in the transmission of order recovery to performance. The EPS forecast for 2025-2026 has been adjusted to 1.30/1.54 yuan (previously 1.52/1.82 yuan), with a new EPS forecast for 2027 at 1.79 yuan. Based on comparable company valuations, a 35 PE for 2025 is applied, raising the target price to 45.54 yuan per share. In 2024, the company achieved revenue of 664 million yuan, down 10.78% year-on-year, and a net profit attributable to shareholders of 194 million yuan, down 16.84% year-on-year. In Q4 alone, revenue was 243 million yuan, down 15.21% year-on-year, and net profit was 93 million yuan, down 18.14% year-on-year. The slowdown in IT investment from upstream financial industry clients and extended project acceptance cycles have led to profit fluctuations. However, policies aimed at boosting the economy and financial markets since Q4 have improved the capital market environment, leading to a noticeable improvement in customer orders. It is expected that the company's operational situation will significantly improve starting Q2 2025 [2]. AI Empowerment and Core Technology Platform Upgrade - The company has upgraded its LiveData platform by integrating AI capabilities, completing a full-chain intelligent upgrade that incorporates AI intelligent analysis, automatic labeling, generative analysis, and self-development capabilities. LiveBOS has achieved exponential improvements in development efficiency through the integration of NL2Model, NL2Code, NL2SQL, and has added components such as intelligent process approval assistants, intelligent knowledge bases, and intelligent document editing for automated business scenario upgrades. The core trading system "Xinchuan" is accelerating, with a successful bid for Everbright Securities establishing a benchmark case. The A5 core trading system is currently the only new generation core trading system in the securities industry that has fully realized domestic substitution. In 2024, the number of A5 clients reached 10, with Dongwu Securities, Donghai Securities, and Maigao Securities fully online and operating smoothly. Projects with CITIC Securities, Nanjing Securities, and Shanghai Securities are ongoing. The recent successful bid for Everbright Securities' new generation core trading system has expanded the client base, setting a benchmark case for further client expansion [3].