Sangfor Technologies (SZ:300454) Huafu Securities·2024-09-05 01:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the market benchmark within the next six months [4][13]. Core Insights - The company reported a significant reduction in the revenue decline in Q2, with a revenue of 1.67 billion yuan, down 2.8% year-on-year, and a net profit of -100 million yuan, which is an improvement of 39 million yuan compared to the same period last year [1][2]. - The company is experiencing resilience in enterprise customer revenue, which grew by 2.5% year-on-year, while government and financial sector revenues declined by 15.9% and 18.2%, respectively [1]. - The company is focusing on cost reduction and efficiency improvement, with overall expenses down by 7.36% year-on-year, and has invested in AI technology, launching the upgraded version of its security product [2]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 2.71 billion yuan, a year-on-year decrease of 7.7%, and a net profit of -590 million yuan, a decrease of 38 million yuan compared to the previous year [1]. - The revenue forecast for 2024-2026 is projected at 7.78 billion yuan, 8.18 billion yuan, and 9.01 billion yuan, with year-on-year growth rates of 2%, 5%, and 10%, respectively [2][3]. - The net profit forecast for the same period is expected to be 240 million yuan, 370 million yuan, and 510 million yuan, with growth rates of 22%, 55%, and 38% [2][3]. Key Financial Ratios - The report indicates a projected EPS of 0.57 yuan for 2024, increasing to 1.22 yuan by 2026, reflecting a positive growth trajectory [3][10]. - The company's P/E ratio is expected to decrease from 95.6 in 2023 to 36.8 in 2026, indicating an improvement in valuation over time [3][10]. - The asset-liability ratio is reported at 44.24%, suggesting a moderate level of financial leverage [4].