Fortune Trend(SH:688318) Guohai Securities·2024-10-03 08:07Investment Rating - The report assigns an investment rating of "Buy" for the company, marking its first coverage [2][7]. Core Insights - The company has shown slight revenue growth with total revenue of 148 million yuan in the first half of 2024, reflecting a year-on-year increase of 0.14%, while net profit decreased by 15.45% to 100 million yuan [2]. - The report highlights the company's focus on innovation and development in its core business, particularly through its bond trading system, which is expected to create new growth momentum [2]. - The company has increased its R&D investment, with R&D expenses rising by 30.02% in the first half of 2024, indicating a commitment to enhancing its market offerings [2]. Financial Performance Summary - For the first half of 2024, the company reported: - Software sales revenue of 54 million yuan, down 5.99% year-on-year, accounting for 36.48% of total revenue - Software maintenance service revenue of 60 million yuan, up 8.06% year-on-year, representing 40.93% of total revenue - Securities information service revenue of 33 million yuan, down 1.00% year-on-year, making up 22.51% of total revenue - Other business revenue of 115,600 yuan, down 82.10% year-on-year, contributing 0.08% to total revenue [2]. - The company's gross margin improved to 82.60%, up 1.99 percentage points year-on-year, while the net profit margin decreased to 68.01%, down 12.49 percentage points year-on-year [2]. - The report projects total revenues for 2024, 2025, and 2026 to be 473 million, 512 million, and 549 million yuan respectively, with net profits of 314 million, 353 million, and 378 million yuan [3][5]. Market Position and Competitive Landscape - The company is positioned as a significant supplier of securities trading system software and securities information services in China, benefiting from the continuous expansion of its fundraising project outcomes and the accumulation of data resources, product R&D, and technological innovation advantages [3][5]. - The report notes that the company's C-end business (securities information services) contributed 22.51% to total revenue in the first half of 2024, indicating a growing presence in the consumer market [2]. User Engagement and Product Development - As of June 2024, the company's Tongdaxin app had 2.19 million monthly active users, ranking seventh among third-party securities service applications [4]. - The report mentions that the company has several fundraising projects underway, with a total pre-investment scale of 1.714 billion yuan, and has achieved various stages of success in these projects [4].