TRS(SZ:300229)2024-09-05 02:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 16.83 based on a 2024 PE of 60 times [4]. Core Insights - The company's performance is currently under pressure, with a 10.63% year-on-year decline in revenue to RMB 397 million in 2024H1, and a 14.12% decrease in net profit to RMB 59.81 million [8]. - Despite the short-term challenges, the company is experiencing growth in AI software product and service revenues, particularly in the foundation model applications and data services sectors [8]. - The company has successfully deployed its foundation model in various sectors, including finance and media, generating significant revenue from new projects [4][8]. Summary by Sections Financial Performance - In 2024H1, the company reported a revenue of RMB 397 million, down 10.63% year-on-year, and a net profit of RMB 59.81 million, down 14.12% year-on-year [8]. - The decline in revenue is attributed to decreased income from security products and system integration, while AI and big data software revenues have increased [8]. - The company forecasts net profits of RMB 223 million, RMB 285 million, and RMB 349 million for 2024, 2025, and 2026 respectively, with EPS projected at RMB 0.28, RMB 0.36, and RMB 0.44 [4][6]. Business Development - The company is focusing on expanding its foundation model applications, having successfully implemented projects in sectors such as finance, media, and public security [4][8]. - The foundation model, "Tuotian," has been integrated with Huawei's solutions, enhancing its market reach and application scenarios [4][8]. - The data service business is stable, with the company holding over 3000 billion high-quality data entries, and achieving significant growth in overseas revenue [4][8]. Data Infrastructure - The company has upgraded its data infrastructure, enhancing its data asset platforms and increasing its data collection capabilities [4][8]. - The data products are being commercialized, with the company providing data services to various industries through its four major data product platforms [4][8]. - The company has added numerous new users across different sectors, indicating a robust demand for its data services [4][8].