ZHI-TECH(SZ:300785) KAIYUAN SECURITIES·2024-08-31 03:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from ongoing investments in AI and overseas expansion, with a focus on the Gen-2 model enhancing its community ecosystem [2][4] - Despite a decline in net profit due to increased R&D expenses, the company maintains a positive outlook for future growth driven by its innovative business strategies [2][3] Financial Performance Summary - In H1 2024, the company's revenue was 716 million yuan, a year-on-year increase of 5.69%, while the net profit attributable to shareholders was 7.66 million yuan, a decrease of 72.81% [2] - The gross margin stood at 46.97%, down 2.15 percentage points year-on-year, and the net profit margin was 1.07%, down 3.09 percentage points year-on-year [2] - The company has adjusted its profit forecasts for 2024-2026, predicting net profits of 91 million, 127 million, and 182 million yuan respectively, with corresponding EPS of 0.46, 0.64, and 0.92 yuan [2] User and Creator Ecosystem - The content ecosystem of "What is Worth Buying" has become more active, with 15.44 million pieces of content published in H1 2024, a year-on-year increase of 21.89% [3] - The registered user count reached 29.64 million, growing by 7.02%, and the mobile app activation reached 74.98 million, up 11.56% year-on-year [3] - The GMV for H1 2024 was 9.18 billion yuan, with a total order volume of 98.05 million [3] AIGC and Overseas Expansion - The company has launched a comprehensive AI strategy, with the Gen-2 model currently in internal testing, leading to a 46.03% year-on-year increase in AIGC content published in H1 2024 [4] - The overseas expansion includes the launch of the Thai version of the app, with plans to replicate the successful domestic model in emerging markets across Asia and Europe [4] Financial Projections - Revenue is projected to grow from 1.8 billion yuan in 2024 to 2.47 billion yuan in 2026, with a year-on-year growth rate of 24.0% in 2024 [5] - The net profit is expected to recover, with a forecasted growth of 21.7% in 2024, reaching 91 million yuan [5] - The company's P/E ratio is projected to decrease from 35.0 in 2024 to 17.5 in 2026, indicating an improving valuation over time [5]