INESA-it(SH:600602) Haitong Securities·2024-09-05 01:10Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company's H1 2024 performance was strong, with revenue reaching RMB 2.89 billion, a 15.70% YoY increase, and net profit attributable to shareholders of RMB 113 million, a 21.78% YoY increase [5] - The company is actively participating in the digital transformation of cities, leveraging its position as a key player in Shanghai's state-owned digital transformation efforts [5] - R&D investment in H1 2024 was RMB 200 million, with a technology investment rate of 6.91%, and the company applied for 70 intellectual property rights, including 17 invention patents [5] - The company's cloud and big data business is steadily advancing, with significant recognition in the industry, including awards for data governance and AI-related services [5] - The company is focusing on AI development, with plans to accelerate the construction of intelligent computing centers and deepen its presence in vertical industries such as government services and large state-owned enterprises [8] Financial Performance - Revenue for 2024E is projected to be RMB 6.055 billion, with a 15.0% YoY growth, and net profit attributable to shareholders is expected to reach RMB 226 million, a 17.1% YoY increase [6] - The company's gross margin is expected to improve to 19.3% in 2024E, up from 18.0% in 2023 [6] - EPS for 2024E is forecasted to be RMB 0.17, with a projected increase to RMB 0.24 by 2026E [6] Business Development - The company is making significant progress in key markets such as transportation, entertainment, municipal services, and healthcare, with multiple project wins and deployments in H1 2024 [7] - In the transportation sector, the company is advancing the construction of a cloud platform for Shanghai's regional railway dispatch and training base [7] - In the healthcare sector, the company is deploying digital twin platforms for ICU units in 23 municipal hospitals [7] Industry Position and Recognition - The company has been recognized as a leader in the AI and big data sectors, with awards such as "2023 Shanghai Data Standardization Advanced Committee Unit" and "2024 Digital Transformation Outstanding Service Enterprise Award" [5] - The company is a key member of the Shanghai Computing Network Association and the China Artificial Intelligence Industry Development Alliance, further solidifying its position in the AI and computing sectors [8]