ROYALFLUSH INFO(SZ:300033) Xin Lang Cai Jing·2025-10-23 00:33Core Insights - The company achieved a total operating revenue of 3.26 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 40%, and a net profit attributable to shareholders of 1.21 billion yuan, up 85% year-on-year [1] - In Q3 2025 alone, the company reported an operating revenue of 1.48 billion yuan, a 57% increase year-on-year, and a net profit of 700 million yuan, reflecting a 144% year-on-year growth [1] Market Activity and Business Performance - The A-share market's average daily trading volume increased by 107% year-on-year to 1.65 trillion yuan in the first three quarters of 2025, with Q3 showing a 211% year-on-year increase to 2.11 trillion yuan, indicating a sustained recovery in investor confidence and heightened demand for financial information services [1] - The company has increased its R&D investment in the AI sector, leading to significant growth in its value-added telecommunications services revenue and enhanced user engagement on its website and app, resulting in increased advertising and internet promotion service revenue [1] Revenue Growth Potential - The company’s contract liabilities rose by 113% year-on-year to 2.519 billion yuan, marking a historical high, while net cash flow from operating activities surged by 235% to 2.2 billion yuan, indicating further revenue growth potential [2] - Total operating costs increased by 16% year-on-year to 1.93 billion yuan, primarily due to increased marketing efforts and sales expenses, suggesting that total revenue is expected to continue rising [2] Cost Management - Operating costs rose by 7% year-on-year to 357 million yuan, while R&D expenses decreased by 2% to 863 million yuan, resulting in a R&D expense ratio decline of 30 percentage points to 26.5% [2] - Sales expenses increased by 33% year-on-year to 530 million yuan, with a sales expense ratio decline of 4 percentage points to 16.3%, attributed to heightened sales promotion efforts [2] - Management expenses rose by 15% year-on-year to 201 million yuan, with a management expense ratio decline of 18 percentage points to 6.2% [2] Strategic Collaborations and AI Integration - The company has formed strategic partnerships with Guotai Junan Securities and Tonghuashun to build an AI-enabled wealth service ecosystem, integrating service experience and data technology [3] - Collaborations with various securities firms aim to create comprehensive financial advisory products and enhance digital and intelligent upgrades in investor services [3] Profit Forecast and Investment Rating - Based on the ongoing positive momentum in the capital market and revenue growth across various business segments, the company maintains its profit forecast, projecting net profits attributable to shareholders of 2.6 billion, 3.4 billion, and 4.3 billion yuan for 2025-2027, representing year-on-year growth rates of 41%, 32%, and 26% respectively [3] - Corresponding price-to-earnings ratios are projected at 73, 56, and 44 times for the respective years, with a "buy" rating maintained [3]