Forever Opensource Software (834415) 国海证券·2024-08-22 23:30Investment Rating - The report assigns an "Accumulate" rating for the company, Hengtuo Kaiyuan, marking its first coverage [1][3]. Core Insights - Hengtuo Kaiyuan is a leading enterprise in the civil aviation information technology sector, focusing on software development and technology services, system integration, and operational maintenance services. The company has successfully replaced foreign software providers like Sabre and Jeppesen, expanding its business into various sectors including government, telecommunications, automotive, manufacturing, and healthcare [1][3][13]. - The company reported a revenue of 191 million yuan in 2023, a year-on-year increase of 6.55%, and a net profit of 20 million yuan, which represents a significant growth of 191.20% compared to the previous year. However, in Q1 2024, the revenue was 33 million yuan, showing a 9.79% increase year-on-year, while the net profit decreased by 30.56% [1][3][19]. - The civil aviation information technology market is expected to continue its growth, driven by the recovery of the aviation industry post-pandemic and the increasing demand for digital transformation in the sector [1][27]. Summary by Sections Company Overview - Hengtuo Kaiyuan, established in 2007 and listed on the Beijing Stock Exchange in 2021, has become a core software supplier in the civil aviation information safety operation field. The company has a clear and stable shareholding structure, with the controlling shareholder having a strong technical background [1][13][19]. Market Trends - The domestic software and information service industry has been steadily growing, with over 380,000 new software and information service companies established by 2023. The total software business revenue reached 12,325.8 billion yuan, with a year-on-year growth of 13.4% [27][29]. - The civil aviation sector is witnessing a recovery, with significant increases in passenger and cargo volumes. In early 2024, the total turnover of civil aviation transportation reached 23.25 billion ton-kilometers, a year-on-year increase of 51.8% [35]. Financial Performance - The company’s revenue from software development and technology services has been the primary source of income, accounting for 62.28% of total revenue in 2023. The gross profit margin has remained around 42%, indicating strong profitability [21][23]. - The forecast for 2024-2026 anticipates revenues of 211 million, 234 million, and 259 million yuan, respectively, with corresponding net profits of 27 million, 30 million, and 34 million yuan, reflecting a growth trajectory [4][3]. Strategic Initiatives - Hengtuo Kaiyuan is actively expanding its business into low-altitude economy sectors and has begun implementing a development strategy that embraces artificial intelligence and digital economy initiatives [3][19]. - The company has successfully acquired a 40% stake in Yixun Information Technology Co., which is expected to create new growth points for the business [3][19].