Topsec(SZ:002212) Xinda Securities·2024-10-28 12:44Investment Rating - The investment rating for the company Tianrongxin (002212.SZ) is not explicitly stated in the report, but it indicates a positive outlook with a focus on growth in new business areas and a recovery in profitability [1]. Core Viewpoints - The company achieved profitability in Q3 2024, with a revenue of 7.09 billion yuan, marking a year-on-year growth of 10.21%. The net profit attributable to shareholders was 0.36 billion yuan, a significant increase of 200.73% year-on-year [1]. - The company is focusing on enhancing quality and efficiency while actively expanding marketing channels. Total expenses decreased by 5.26% year-on-year, with R&D expenses down by 8.05% and management expenses down by 24.18% [1]. - New business directions, particularly in cloud security and AI integration, are showing strong growth, with cloud security revenue increasing by 126.4% year-on-year [1]. Financial Summary - For the first three quarters of 2024, the company reported total revenue of 15.82 billion yuan, a decrease of 3.98% year-on-year. The decline in revenue is narrowing compared to previous periods [1]. - The company’s basic security products generated revenue of 9.94 billion yuan, down 4.91% year-on-year, while cloud computing and cloud security products saw an increase in revenue [1]. - The earnings per share (EPS) forecast for 2024-2026 is projected to be 0.09, 0.17, and 0.25 yuan, respectively, with corresponding P/E ratios of 73.69, 39.50, and 26.69 [1][3]. Business Segments - The company’s revenue from the healthcare sector grew by 40.23% year-on-year, and the energy sector saw a revenue increase of 26.64% [1]. - The report highlights the launch of over 100 types of firewall products and the application of AI technologies in various security scenarios, indicating a strong commitment to innovation [1]. Future Outlook - The network security industry is showing signs of recovery, and the company is expected to continue its strategic initiatives in AI and cloud security, which are anticipated to drive future growth [1].