Transwarp(688031) 国泰君安·2024-09-10 07:40Investment Rating - The report maintains a "Buy" rating and lowers the target price to 49.57 CNY, corresponding to a 10x PS for 2024 [2][3]. Core Views - The company's performance remains relatively stable, with revenue structure continuously improving and a significant increase in gross margin. The ongoing AI transformation of products is expected to lead to better-than-expected growth in the future [1][2]. Summary by Sections Earnings Forecast - The company is projected to achieve revenues of 5.99 billion CNY (-0.86%), 7.33 billion CNY (-2.29%), and 8.81 billion CNY for the years 2024-2026. The net profit attributable to the parent company is expected to be -2.06 billion CNY (-0.62), -1.39 billion CNY (-1.28), and -0.62 billion CNY respectively. The EPS is forecasted to be -1.71 CNY (-0.52), -1.15 CNY (-1.06), and -0.51 CNY [11][12]. Valuation Conclusion - The company is not yet profitable, and a PS valuation method is used. The average PS of comparable companies for 2024 is 13.55x, and a conservative 10x PS valuation is applied to the company, leading to a reasonable valuation of 49.57 CNY per share [12][13]. Revenue Structure Improvement - The revenue from the high-productivity, high-margin basic software business increased by 22.00% year-on-year in the first half of 2024, accounting for 59.78% of total revenue, up 10.1 percentage points year-on-year. The financial sector contributed 39.69% to revenue, an increase of 7.31 percentage points [2][11]. AI Product Development - The company is intensifying its AI product upgrades, with new versions of its data platform enhancing functionality and usability. The introduction of the TDH4.9 version and the Sophon LLMOps1.3 platform aims to meet the growing demand for AI applications, positioning the company as a key player in AI infrastructure [2][11].