ROYALFLUSH INFO(300033) 东吴证券·2024-10-24 04:52Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has experienced a slight decline in revenue for the first three quarters of 2024, with total revenue down 1.59% year-on-year to 2.335 billion yuan, and net profit down 15.53% to 651 million yuan. However, the third quarter showed a revenue increase of 4.81% year-on-year to 945 million yuan, indicating a potential turnaround [1] - The report highlights a significant increase in C-end demand following government policies aimed at boosting market activity, with a notable rise in A-share trading volume in late September 2024 [1] - Increased operational costs and sales investments have led to a decrease in net profit margin, which fell by 4.6 percentage points year-on-year to 27.88% due to higher expenses in data quality improvement and sales promotion [1] - The company is enhancing its AI product offerings, with updates to both C-end and B-end products, which are expected to improve competitiveness and drive revenue growth [1] - The profit forecast has been revised upwards, with expected net profits for 2024-2026 now at 1.44 billion, 1.66 billion, and 1.90 billion yuan respectively, reflecting a positive outlook for the company's performance [1] Summary by Sections Revenue and Profitability - Total revenue for 2024 is projected to reach 3.784 billion yuan in 2024E, with a year-on-year growth of 6.18% [1] - The net profit for 2024E is estimated at 1.443 billion yuan, representing a 2.90% increase year-on-year [1] - The report indicates a decrease in net profit margin due to increased operational costs [1] Cost Structure - Operating costs increased by 17.99% year-on-year to 334 million yuan, driven by higher data quality and personnel costs [1] - Sales expenses rose by 10.41% to 397 million yuan, reflecting the company's efforts to expand market share [1] - R&D expenses increased by 1% to 880 million yuan, with a focus on AI model development [1] Product Development - The AI investment assistant "Wencai" has been updated to enhance stock analysis capabilities, indicating ongoing improvements in product functionality [1] - The B-end product iFinD has also been updated to include real-time market data for various financial instruments [1] Market Outlook - The report notes a turning point in market activity due to government policies aimed at stabilizing the stock market and promoting consumption, which is expected to benefit the company's C-end business [1] - The anticipated increase in market liquidity is expected to positively impact the company's revenue growth in the upcoming quarters [1]