Topsec(SZ:002212) KAIYUAN SECURITIES·2024-10-28 08:00Investment Rating - The investment rating for the company is maintained as "Buy" [1] Core Views - The company is a leading provider in network security, big data, and cloud services, with a focus on enhancing quality and efficiency [3][4] - The forecasted net profits for 2024-2026 are 271 million, 351 million, and 462 million CNY respectively, with corresponding EPS of 0.23, 0.30, and 0.39 CNY per share [3] - The current stock price corresponds to a PE ratio of 26.1, 20.1, and 15.3 for the years 2024-2026, reflecting the company's strategic positioning in cloud security, AI, and data security [3] Financial Performance Summary - In the first three quarters of 2024, the company achieved operating revenue of 1.582 billion CNY, a year-on-year decline of 3.98%. The net profit attributable to the parent company was -169 million CNY, with a year-on-year loss reduction of 31.83% [4] - In Q3 alone, the company reported operating revenue of 709 million CNY, a year-on-year increase of 10.21%, and a net profit of 36.49 million CNY, marking a return to profitability [4] - The company has successfully reduced total expenses by 10.15% year-on-year in Q3, contributing to improved profit margins [4] Research and Development - The company is continuously enhancing its R&D capabilities, launching new technologies and products in network security and data security, including AI-enabled firewalls and a new database auditing and protection system [5] - New products in cloud computing and security have been introduced, such as the Tianwen Intelligent Cloud Platform and various new versions of existing products [5] Financial Forecast Summary - The projected operating revenues for 2024, 2025, and 2026 are 3.498 billion, 4.079 billion, and 4.852 billion CNY respectively, with expected growth rates of -11.8%, 12.0%, and 16.6% [6] - The forecasted net profits for the same period are -371 million, 271 million, and 351 million CNY, indicating a significant recovery trajectory [6] - The gross margin is expected to remain stable around 59.3% to 58.4% over the forecast period [6]