Wuhan Citms Technology (SH:688038) Huachuang Securities·2024-09-18 13:10Investment Rating - The investment rating for the company is "Neutral" (maintained) [1]. Core Views - The company's performance has stabilized and is showing a recovery, benefiting from the accelerated promotion of public safety video coding and decoding standards [1]. - In the first half of 2024, the company achieved operating revenue of 173 million yuan, a year-on-year increase of 39.47%, and a net profit attributable to the parent company of 7 million yuan, a year-on-year increase of 198.42% [1]. - The company is transitioning from a project integration company to a software product company, with significant growth in new software project contracts and operation service contracts [1]. - The gross profit margin for the first half of 2024 was 25.53%, an increase of 5.74 percentage points year-on-year [1]. - The company is actively expanding its market presence by establishing new branches in Sichuan and Shaanxi, aiming to capture new market opportunities [1]. Financial Summary - Total operating revenue for 2023 is projected at 219 million yuan, with expected growth rates of 86.2% for 2024, 14.3% for 2025, and 11.1% for 2026 [2]. - The net profit attributable to the parent company is forecasted to be 13 million yuan in 2024, with growth rates of 112.4%, 52.3%, and 34.0% for the subsequent years [2]. - The earnings per share (EPS) is expected to improve from -0.88 yuan in 2023 to 0.11 yuan in 2024, 0.17 yuan in 2025, and 0.22 yuan in 2026 [2]. - The company's total assets are projected to increase from 1,264 million yuan in 2023 to 1,738 million yuan by 2026 [5].