Eazytec(688258) 华鑫证券·2024-09-01 10:32Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][4]. Core Insights - The company, Zhuoyi Information (688258.SH), is a leader in domestic computer firmware and is experiencing accelerated growth driven by the domestic innovation (Xinchang) initiatives. The company reported a revenue of 157 million yuan in the first half of 2024, a year-on-year increase of 16.4%, while the net profit attributable to shareholders decreased by 61.98% to 19.28 million yuan [1][2]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 157 million yuan, up 16.4% year-on-year, primarily due to the acquisition of Aipuyang [1]. - The net profit attributable to shareholders was 19.28 million yuan, down 61.98% year-on-year, mainly due to a decrease in investment income of 36.85 million yuan [1]. - The gross profit margin was 48.31%, an increase of 1.18 percentage points year-on-year, while the net profit margin was 15.16%, a decrease of 22 percentage points [1]. Business Segments - The core firmware business in cloud computing devices accounted for 40.04% of revenue, totaling 62.77 million yuan, a decrease of 6.14% year-on-year [1]. - The cloud service business generated 39.54 million yuan, down 55.82% year-on-year, with government and enterprise cloud services contributing 16.07 million yuan, a decline of 81.19% [1]. - The new PB business, stemming from the acquisition of Aipuyang, accounted for 31.22% of total revenue, generating 48.93 million yuan [1]. Market Trends - The report highlights the necessity of digital transformation, with cloud computing becoming a key driver of economic growth in China. The global cloud computing market was valued at approximately 586.49 billion USD in 2023, with a year-on-year growth of 19.4% [2]. - The Chinese cloud computing market reached 616.5 billion yuan in 2023, growing by 35.5%, and is expected to exceed 2.1 trillion yuan by 2027 [2]. Future Outlook - The company is expected to benefit from the ongoing domestic replacement trend in cloud computing, with projected revenues of 406 million yuan, 519 million yuan, and 666 million yuan for 2024, 2025, and 2026, respectively [4][6]. - Earnings per share (EPS) are forecasted to be 0.63 yuan, 0.83 yuan, and 1.05 yuan for the same years, with corresponding price-to-earnings (P/E) ratios of 38, 29, and 23 [4][6].