Sangfor Technologies (SZ:300454) Guoxin Securities·2024-10-25 11:00Investment Rating - The investment rating for the company is "Outperform the Market" [3][6][9] Core Views - The company's revenue showed signs of recovery in Q3, with a revenue of 1.926 billion yuan, representing a year-on-year increase of 2.77%. The net profit attributable to the parent company was 12 million yuan, indicating growth compared to the previous year [1][5] - The company has effectively controlled costs, with sales, management, and R&D expenses changing by -9.56%, +1.73%, and -5.78% respectively. Contract liabilities reached 1.445 billion yuan, a year-on-year increase of 11.58% [1][5] - The company is actively investing in AI, launching new products such as a security GPT 4.0 and an updated distributed storage EDS version 520, which significantly enhance data classification and risk assessment capabilities [1][5] - The implementation of the "Network Data Security Management Regulations" in January 2025 is expected to drive rapid growth in the data product market, while domestic innovation in the industry continues to create new market opportunities [1][5] Financial Forecasts - The company is expected to achieve revenues of 8.031 billion yuan, 8.808 billion yuan, and 10.007 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 5%, 10%, and 14% [6][7] - The net profit attributable to the parent company is projected to be 340 million yuan, 573 million yuan, and 764 million yuan for the same years, corresponding to a PE ratio of 78, 47, and 35 times [6][7] - The gross margin for the first three quarters was 60.60%, a decrease of approximately 4.5 percentage points year-on-year, primarily due to rising raw material costs [1][5]