ZHI-TECH(SZ:300785) Huachuang Securities·2024-09-10 07:40Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 18.8 yuan [1]. Core Insights - The company reported a year-on-year revenue increase of 5.7% for the first half of 2024, reaching 720 million yuan, while the net profit attributable to shareholders decreased by 72.7% to 8 million yuan [1]. - In Q2 alone, the company achieved a revenue of 420 million yuan, a slight decline of 1% year-on-year, but the net profit increased by 5.2% to 30 million yuan [1]. - The company has launched a comprehensive AI strategy, upgrading its core product "What Worth Buying" App to "AI Native What Worth Buying GEN2" and actively pursuing international expansion [2]. - The AI-driven shopping assistant "Xiao Zhi" has been introduced to enhance user engagement and provide personalized recommendations based on real-time consumption data [2]. - The content supply has seen significant growth, with 15.4362 million articles published during the reporting period, a 21.89% increase year-on-year, and AI-generated content contributing 39.61% of the total, up 46.03% year-on-year [2]. Financial Summary - The company expects revenues for 2024-2026 to be 1.65 billion, 1.86 billion, and 2.05 billion yuan respectively, with net profits projected at 78 million, 125 million, and 181 million yuan [2]. - The earnings per share (EPS) is forecasted to grow from 0.39 yuan in 2024 to 0.91 yuan in 2026, reflecting a significant increase [3]. - The company’s total revenue for 2023 is reported at 1.452 billion yuan, with a year-on-year growth rate of 18.2% [3]. User Engagement and Marketing - The average monthly active users for the first half of 2024 stood at 37.7903 million, a year-on-year increase of 1.62%, while registered users reached 29.6445 million, up 7.02% [2]. - The company has effectively utilized advertising during key promotional events, significantly enhancing brand visibility with over 30 million exposures [2].