VENUSTECH(SZ:002439) AVIC Securities·2024-09-03 23:38Investment Rating - The investment rating for the company is "Buy" [1][12][16] Core Views - The company has shown strong growth in its emerging security business despite facing challenges in revenue scale due to short-term customer investment limitations in the cybersecurity industry [1][11] - The company reported a revenue of 1.574 billion yuan, a year-on-year increase of 3.42%, but a net profit attributable to shareholders of -182 million yuan, a decrease of 198.60% [1][12] - The company is focusing on strategic integration with its major shareholder and maintaining collaborative revenue with China Mobile, which continues to grow [1][10] Financial Performance Summary - The company achieved a net cash flow from operating activities of -519 million yuan, showing a slight improvement of 1.33% year-on-year [1][9] - The gross profit margin for Q2 2024 increased by 13.77 percentage points to 64.59% [1][12] - The company expects rapid growth in new orders and strong performance in its emerging security business, particularly in cloud security, which saw revenue growth of over 200% year-on-year [1][11] Future Projections - Revenue projections for 2024-2026 are estimated at 5.027 billion yuan, 5.831 billion yuan, and 6.908 billion yuan respectively, with net profits of 882 million yuan, 1.056 billion yuan, and 1.233 billion yuan [11][12][14] - The company is expected to maintain a PE ratio of 18X, 15X, and 13X for the respective years [12][14] Strategic Initiatives - The company is enhancing its strategic collaboration with China Mobile, focusing on building a comprehensive security operation center system [10][11] - The company is committed to increasing R&D investments in key strategic areas such as security operations, cloud security, and artificial intelligence [1][10]