Apex(SH:603383) AVIC Securities·2024-10-13 23:30Investment Rating - The investment rating for the company is "Buy," indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [12]. Core Insights - The company focuses on financial technology, with its main business encompassing securities, funds and asset management, trust, banking, futures, and market services. It has a strong customer base and extensive experience in the securities market's information technology services [3][5]. - The company has made significant breakthroughs in core technologies through its commitment to foundational research and innovation, particularly in the area of domestic innovation (信创) [3][5]. - The company's revenue for the first half of 2024 is projected to be 7.82 billion yuan, with net profits expected to reach 2.34 billion yuan, reflecting a growth trajectory supported by its innovative core systems [5][11]. Summary by Sections Company Overview - The company has a total share capital of 205.44 million shares and a market capitalization of approximately 9.17 billion yuan. The circulating market value is about 9.10 billion yuan [3]. - The company has maintained a high gross margin of 69.18% and has consistently increased its R&D expenditure, which reached 0.80 billion yuan in the latest reporting period, representing a year-on-year increase of 7.79% [3][5]. Financial Performance - In the first half of 2024, the company reported revenues of 267 million yuan, a decrease of 4.93% year-on-year, and a net profit of 49 million yuan, down 21.11% year-on-year. The second quarter saw revenues of 129 million yuan, a decline of 13.88% year-on-year [3][5]. - The company has a debt-to-asset ratio of 15.30% and a return on equity of 3.59%, indicating a stable financial position [3]. Market Position and Future Outlook - The company is positioned to benefit from the ongoing digital transformation in the financial sector, with its core system A5 already making significant inroads with major clients such as CITIC Securities and Nanjing Securities [5][11]. - The projected revenue growth for the company from 2024 to 2026 is expected to be 7.82 billion yuan, 9.22 billion yuan, and 11.02 billion yuan, respectively, with corresponding net profits of 2.34 billion yuan, 2.70 billion yuan, and 3.20 billion yuan [5][11].