ROYALFLUSH INFO(300033) 国海证券·2024-08-27 14:37Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing pressure on performance but is increasing investments in AI while awaiting market recovery [1] - The company reported a revenue of 1.389 billion yuan for H1 2024, a decrease of 5.51% year-on-year, and a net profit of 363 million yuan, down 20.99% year-on-year [3] - The company is focusing on enhancing its AI capabilities and integrating them into existing products to improve monetization [7] Financial Performance - In H1 2024, the company's sales, management, and R&D expense ratios were 17.44%, 8.23%, and 42.62%, respectively, with year-on-year increases of 2.29, 1.36, and 4.31 percentage points [2] - The company's contract liabilities increased by 9.67% year-on-year to 1.202 billion yuan, indicating operational resilience [5] - The company’s revenue from various business segments showed mixed results, with value-added telecom services down 10.96% and software sales down 7.19% year-on-year [4] AI Investment and Development - The company is intensifying its R&D in AI technologies, achieving advancements in areas such as large models, natural language processing, and machine translation [6] - The launch of the HithinkGPT large model positions the company as a leader in the financial dialogue model space, enhancing its service capabilities [7] Earnings Forecast - The company is projected to achieve revenues of 3.674 billion yuan, 4.054 billion yuan, and 4.508 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 1.353 billion yuan, 1.539 billion yuan, and 1.759 billion yuan [8] - The expected EPS for the same years is 2.52 yuan, 2.86 yuan, and 3.27 yuan per share, with current P/E ratios of 38, 34, and 30 times [8]