Apex(SH:603383) SINOLINK SECURITIES·2024-08-27 00:23Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company experienced a revenue decline of 4.9% year-on-year in the first half of 2024, with revenue reaching 270 million RMB. The net profit attributable to the parent company decreased by 23.1% to 40 million RMB [1]. - The decline in revenue and profit is attributed to a slowdown in IT investments from financial industry clients, leading to longer project timelines [2]. - The company is making progress in its new generation core trading system A5 and has successfully adapted its wealth management products for new technology [2]. - The company is focused on cost reduction and efficiency improvement, with expectations for continued cost management in the second half of the year [2]. Summary by Sections Performance Review - In the first half of 2024, the company reported revenue of 270 million RMB, a decrease of 4.9% year-on-year. The net profit after deducting non-recurring items was 40 million RMB, down 23.1% year-on-year [1]. - In Q2 2024, revenue was 130 million RMB, a decline of 13.9% year-on-year, with net profit of 30 million RMB, down 20.8% year-on-year [1]. Operational Analysis - Cash received from sales and services in the first half of 2024 was 170 million RMB, a decrease of 14.9% year-on-year, impacted by reduced IT investments from financial clients [2]. - The company is advancing its A5 trading system across multiple brokerage projects and has achieved full adaptation of wealth management products to new technology [2]. - The company is actively expanding in the asset management sector, providing cutting-edge digital services to various financial institutions [2]. Profit Forecast, Valuation, and Rating - Revenue projections for 2024 to 2026 are 730 million RMB, 750 million RMB, and 770 million RMB, with year-on-year growth rates of -1.8%, 2.9%, and 3.0% respectively. Net profit forecasts are 220 million RMB, 230 million RMB, and 240 million RMB, with corresponding growth rates of -7.1%, 5.0%, and 5.4% [3].