I2SOFT(830799) 西南证券·2024-09-04 03:00Investment Rating - The report assigns a "Hold" investment rating to the company, indicating a cautious approach towards its stock performance in the near term [1][25]. Core Insights - The company reported a revenue of 270 million yuan in H1 2024, a year-on-year decrease of 7.8%, and a net profit attributable to shareholders of 20.84 million yuan, down 11.6% year-on-year. However, the non-recurring net profit slightly increased by 0.23% to 20.46 million yuan [1][11]. - The full acquisition of Beijing Xinli Hechuang for 110 million yuan is expected to enhance market competitiveness through synergies, particularly in the credit and financial innovation sectors [1][2]. - The company is focusing on artificial intelligence as a key research direction, participating in national projects aimed at integrating AI into financial risk monitoring and customer service solutions [2][9]. - The company has a strong presence in the financial IT sector, serving 15 out of 20 systemically important banks in China, and is actively expanding its client base to include non-bank financial institutions [5][23]. Financial Performance Summary - The company's revenue from 2020 to 2023 showed a compound annual growth rate (CAGR) of 29.4%, but H1 2024 experienced a decline due to the completion of large projects in the previous year [11][14]. - The projected net profits for 2024, 2025, and 2026 are estimated at 73.4 million yuan, 88.1 million yuan, and 102.1 million yuan, respectively, with corresponding price-to-earnings (PE) ratios of 26, 21, and 18 [2][25]. - The company’s gross margin has slightly decreased to 32.9% in H1 2024, attributed to an increase in hardware revenue [19][24]. Market Position and Strategy - The company has established a comprehensive product line covering the entire financial digitalization chain, including online payment, online loans, and identity verification services [4][9]. - The company is actively involved in the development of the Hongmeng ecosystem and has trained over 1,149 personnel in Hongmeng development certification to meet the needs of banking clients [2][4]. - The company aims to deepen its market share through mergers and acquisitions, optimizing its client structure and enhancing competitiveness in the financial IT sector [1][2].