SERVYOU(SH:603171)2024-08-28 02:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 33.70, reflecting a 6-month outlook [5][10]. Core Insights - The company's B-end business is experiencing steady growth, with a notable increase in net profit margin (NPM) to 26.5% in 2024H1, up from 22.62% at the end of 2023 [5][9]. - The intelligent financial and tax service cloud business generated RMB 555 million in revenue, marking a 10.4% year-on-year increase, while net profit reached RMB 147 million, up 11.0% [5][9]. - The company is actively investing in AI and compliance technologies, enhancing its service offerings and aiming to lower the digitalization threshold for enterprises [2][5]. Summary by Sections Financial Performance - In 2024H1, total revenue was RMB 814 million, a 7.45% increase year-on-year, with a net profit attributable to shareholders of RMB 88.24 million, up 0.86% [5][9]. - The recurring net profit attributable to shareholders was RMB 82.88 million, reflecting a 17.81% increase [5][9]. - The company forecasts revenue growth to RMB 2.11 billion in 2024, with a projected net profit of RMB 172 million, and EPS expected to rise to RMB 0.42 [3][7]. Business Segments - The B-end business is highlighted for its robust growth, with the intelligent financial and tax service cloud platform serving 9 million active enterprise users, an increase of 9.8% [5][9]. - The G-end business, focusing on digital government services, achieved revenue of RMB 257 million in 2024H1, a 2.1% increase year-on-year [5][9]. Technological Advancements - The company has developed the "Xiyou" foundation model algorithm, which has passed regulatory approval, enhancing its capabilities in financial and tax services [5][10]. - Investments in vertical large language models are aimed at improving service efficiency and quality across various financial and tax business scenarios [2][5]. Market Position and Future Outlook - The company is positioned as a leader in the tax data application field in China, with a comprehensive product line and successful case studies across multiple industries [4][9]. - The ongoing financial and tax system reforms are expected to create new opportunities for the company, particularly in enhancing digital governance and tax management [4][10].