GUOTAI EPOINT SOFTWARE CO.(688232) 民生证券·2024-10-27 10:42Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its potential to benefit from future fiscal policies and its leading position in digital transformation for government sectors [1]. Core Insights - The company reported a turnaround in Q3 2024, achieving a net profit of 9.78 million yuan, compared to a loss of 8.9 million yuan in the same period last year. Revenue for Q3 reached 474 million yuan, marking a year-on-year increase of 1.63% [1]. - A strategic partnership with Huawei Cloud was established to enhance digital government transformation, focusing on key industries such as public administration, energy, and manufacturing [1]. - The company is expanding its procurement operation business through a SaaS model, which has shown significant growth with a 54.76% increase in the number of service areas [1]. - Collaboration with Changsha aims to explore the implementation of data elements, enhancing the value of government data and supporting various applications in healthcare, smart cities, and financial services [1]. - Profit forecasts for the company indicate a net profit of 237 million yuan in 2024, with projections of 307 million yuan and 380 million yuan for 2025 and 2026, respectively [2][4]. Financial Summary - For 2023, the company expects total revenue of 2,441 million yuan, with a projected decline of 13.6%. However, revenue is anticipated to recover in subsequent years, reaching 3,213 million yuan by 2026, reflecting a growth rate of 22.2% [2][4]. - The net profit for 2023 is projected at 195 million yuan, with a significant recovery expected in 2024 at 237 million yuan, representing a growth rate of 21.9% [2][4]. - The company's PE ratio is expected to decrease from 58 in 2023 to 30 by 2026, indicating an improving valuation as profitability increases [2][4].