SERVYOU(SH:603171) Orient Securities·2024-08-26 13:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 29.34 yuan [3][6]. Core Views - The company has achieved steady growth by seizing opportunities in the "Golden Tax Phase IV" industry, reporting a revenue of 814 million yuan (up 7.45% year-on-year) and a net profit of 88 million yuan (up 0.86% year-on-year) for the first half of 2024 [2]. - The B-end business, focusing on intelligent tax services, has seen revenue growth driven by a three-tier service value system that lowers the threshold for enterprises to digitize their tax processes [2]. - The G-end business has solidified its position as a core builder for the Golden Tax Phase IV, expanding its capabilities in data element development and transitioning to a data service model for digital government services [2]. - The company is accelerating the development and application of large financial tax models, which is expected to enable scalable expansion of high-value services [2]. Summary by Sections Financial Performance - For H1 2024, the intelligent tax service cloud business generated revenue of 555 million yuan (up 10.4% year-on-year) with a net profit of 147 million yuan (up 11.0% year-on-year) and a net profit margin of 26.5% [2]. - The digital government business achieved revenue of 257 million yuan (up 2.1% year-on-year) [2]. - The company forecasts revenue growth for 2024-2026, with expected earnings per share of 0.35 yuan, 0.55 yuan, and 0.77 yuan respectively [3]. Market Position and Strategy - The company has entered key projects with the National Taxation Bureau, enhancing its industry position [2]. - The focus on AIGC technology investments and the development of proprietary financial tax models is expected to strengthen competitive advantages in the B-end digital services market [2]. Valuation Metrics - The report provides a valuation based on absolute valuation methods (FCFF), leading to a target price of 29.34 yuan [3]. - The company’s financial metrics indicate a projected revenue growth of 16.2% in 2024, with a gradual improvement in profit margins [5].