BEYONDSOFT(002649) 海通国际·2024-06-17 06:30Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 10.84 for 2024, reflecting a PE of 25x [12][32]. Core Insights - Overall revenue remained stable with a slight increase of 1.89% year-on-year, reaching RMB 6.60 billion in 2023. However, net profit attributable to shareholders decreased by 29.73% to RMB 217 million due to increased operating costs and asset impairment provisions [3][11]. - The financial business segment showed steady growth, achieving revenue of RMB 1.74 billion, up 9.26% year-on-year, while the internet business faced challenges with a revenue decline of 2.32% to RMB 2.44 billion [3][11]. - The company is focusing on new business sectors, particularly in agriculture, energy, and large central SOEs, which are expected to contribute significantly to revenue growth in the coming years [12][32]. Financial Performance Summary - In 2023, the company reported total revenue of RMB 6.60 billion, with a net profit of RMB 217 million. The projected revenues for 2024, 2025, and 2026 are RMB 7.02 billion, RMB 7.87 billion, and RMB 8.97 billion, respectively [10][29]. - The net profit forecast for 2024 is RMB 256 million, with an expected EPS of RMB 0.43, showing a recovery trend in subsequent years [12][32]. - The overall gross profit margin for 2023 was 24.9%, with expectations for slight improvements in the following years [10][29]. Business Development and AI Strategy - The company is actively investing in AI technology and has established collaborations with major players like Microsoft, Baidu, and Huawei to enhance its AI capabilities and applications [5][12]. - The establishment of an AI research center in collaboration with Shanghai Jiao Tong University aims to strengthen R&D capabilities and talent acquisition [5][12]. - The company is expanding its AI applications from internal management processes to production and manufacturing, aiming to build comprehensive enterprise-level AI architectures [5][12]. Data Elements and Consulting Business - The company has developed a robust big data management platform, providing customized data intelligence solutions, particularly in the financial sector [31]. - The consulting business is gaining traction, with a focus on digital transformation consulting, which is expected to grow due to the exit of foreign-funded enterprises from the market [31][12]. - The company is closely monitoring data-related policies and exploring new business opportunities through collaborations with government and industry associations [31][12].