Topsec(SZ:002212) EBSCN·2024-08-21 09:41Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 4.34 CNY [3][9]. Core Insights - The company has significantly improved its revenue quality, with a gross margin increase of 7.86 percentage points year-on-year. New business revenues have shown strong growth, particularly in cloud security (up 51.52%), cloud computing (up 35.80%), and trusted innovation security (up 22.99%) [1]. - The company is actively exploring the integration of "AI + Security" and has launched several products, including the Tianwen large model system and various security solutions for low-altitude economy and satellite internet [1]. - The national policies are expected to drive demand for security solutions, with a projected annual growth rate of over 20% in the data industry by 2026 [1]. Summary by Sections Financial Performance - In H1 2024, the company reported revenues of 873 million CNY, a decrease of 13.07% year-on-year, and a net loss attributable to shareholders of 206 million CNY, slightly improved from a loss of 212 million CNY in the same period last year [2]. - The total expenses decreased by 2.63% year-on-year, with R&D expenses down 5.80% and management expenses down 30.64% [1]. Revenue Growth - The company has seen substantial revenue growth in specific sectors: healthcare (up 46.45%), energy (up 33.42%), law enforcement (up 31.13%), and transportation (up 15.63%) [1]. Profitability Forecast - The net profit forecast for 2024-2026 has been adjusted to 263 million CNY, 358 million CNY, and 410 million CNY, respectively, reflecting a downward adjustment of 32.0%, 31.7%, and 25.3% [3]. - The projected P/E ratios for 2024-2026 are 19x, 14x, and 12x, respectively [3]. Market Position - The company is positioned to benefit from national strategic implementations and the growing market demand for cybersecurity and data security solutions [1].