YGSOFT(SZ:002063) CHINA DRAGON SECURITIES·2024-10-28 09:41Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [2][4] Core Views - The company has seen a significant increase in contract assets, indicating a sustained demand logic. Despite revenue and profit pressures in the first three quarters of 2024, the company reported total operating revenue of 1.539 billion yuan, a year-on-year decrease of 1.44%, and a net profit attributable to shareholders of 110 million yuan, down 27.21% year-on-year. In Q3 2024, the company achieved operating revenue of 494 million yuan, a year-on-year increase of 3.40%, with a net profit of 54 million yuan, down 12.11% year-on-year [2][3] - The company’s contract assets reached 1.596 billion yuan, an increase of 124.22% from the beginning of the period, while inventory increased by 194.90%. The improvement in operating cash flow is expected as project settlements occur [2][3] - The company is a leader in enterprise management software for the energy and power industry and is expected to benefit from accelerated demand growth in the sector. The business focuses on four major areas: "Digital Enterprise, Smart Energy, Xinchuang Platform, and Social Connectivity," actively participating in digital grid construction and promoting the digital transformation of large power generation groups [2][3] Financial Summary - For the years 2024 to 2026, the company is projected to have revenue growth rates of 9.00%, 13.00%, and 15.00%, respectively. The estimated net profits for 2024, 2025, and 2026 are 364 million yuan, 422 million yuan, and 493 million yuan, respectively. The expected EPS for the same years are 0.19 yuan, 0.22 yuan, and 0.26 yuan, with corresponding PE ratios of 30.3, 26.2, and 22.4 times [3][5] - The company’s current price is 5.80 yuan, with a market capitalization of approximately 11.05 billion yuan. The 52-week price range is between 4.10 yuan and 6.40 yuan [2][3]