SERVYOU(SH:603171) Changjiang Securities·2024-08-22 13:42Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported stable growth in its performance for the first half of 2024, with revenue reaching 814 million, a year-on-year increase of 7.5%. The net profit attributable to shareholders was 88 million, up 0.9% year-on-year, while the net profit after deducting non-recurring items was 83 million, reflecting a 17.8% increase year-on-year [2][3]. - The company has effectively controlled expenses, with sales, management, and R&D expenses growing at rates lower than the revenue growth [2]. - The B-end business continues to perform well, with a significant increase in active enterprise users and paid users, while the G-end is expected to reduce losses following the completion of key projects [2][3]. - The implementation of a vertical large language model in the financial and tax domain has been achieved, enhancing product value and customer experience [2][3]. - The ongoing tax system reform is anticipated to drive growth, particularly in the G-end, by accelerating the rollout of the Jin Si system and expanding the market for financial and tax SaaS products [3]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 814 million, a 7.5% increase year-on-year. The G-end revenue was 257 million, up 2.1%, while the B-end revenue was 555 million, reflecting a 10.4% increase. The net loss for the G-end was 59 million, compared to a loss of 45 million in the same period last year [2]. - The company reported a net cash flow from operating activities of -284 million, an improvement from -316 million in the previous year [2]. Business Segments - The B-end business is showing continuous growth, with active enterprise users reaching 9 million and paid users at 6.15 million, marking an 8.3% year-on-year increase [2]. - The G-end business is expected to see reduced losses as key projects are completed, which will alleviate R&D pressures [2][3]. Future Outlook - The company forecasts net profits attributable to shareholders of 205 million, 416 million, and 558 million for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 48.9X, 24.1X, and 18.0X [3].