SERVYOU(603171) Minsheng Securities·2024-10-27 12:51Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Insights - The company achieved a revenue of 1.284 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 7.38%. The net profit attributable to shareholders reached 116 million yuan, up 12.06% year-on-year, while the net profit excluding non-recurring items was 106 million yuan, reflecting a significant growth of 24.82% [2]. - In Q3 2024, the company reported a single-quarter revenue of 469 million yuan, a year-on-year increase of 7.26%. The net profit attributable to shareholders for the quarter was 28 million yuan, showing a remarkable growth of 73.40% year-on-year, and the net profit excluding non-recurring items was 23 million yuan, up 58.24% year-on-year [2]. - The company has successfully registered its "Xiyou" large model algorithm, marking a significant advancement in the application of AI in the financial and tax sectors. This model aims to enhance efficiency and service quality in tax management for small and micro enterprises [2]. - The ongoing fiscal and tax reforms in China are expected to create incremental demand for information technology in the sector. The company is positioned as a core vendor in tax IT system construction, with potential new growth opportunities arising from the new round of fiscal and tax reforms [2]. - The forecasted net profits for the company from 2024 to 2026 are expected to be 203 million yuan, 294 million yuan, and 366 million yuan, respectively, with year-on-year growth rates of 143%, 45%, and 25%. The current market capitalization corresponds to PE ratios of 57, 39, and 31 times for the years 2024 to 2026 [2]. Financial Summary - For the first three quarters of 2024, the company reported a revenue of 1.284 billion yuan, with a net profit of 116 million yuan and a net profit excluding non-recurring items of 106 million yuan [2]. - The projected revenue growth rates for the years 2024, 2025, and 2026 are 15.1%, 17.6%, and 15.0%, respectively [3]. - The company's net profit is expected to grow from 202 million yuan in 2024 to 366 million yuan in 2026, with corresponding growth rates of 143.2% and 24.5% [6].