SERVYOU(603171)2024-10-29 00:42Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company reported a significant increase in net profit for Q3, with a year-on-year growth of 73.4% for net profit attributable to shareholders and 58.2% for net profit excluding non-recurring items [3][4] - The company's revenue for the first three quarters reached 1.28 billion RMB, representing a year-on-year increase of 7.4% [3] - The successful registration of the "Xiyou" large model algorithm enhances the company's AI capabilities in the tax and finance sector, potentially expanding its business scenarios [4] - The company holds a strong position in the tax IT sector, supported by a substantial data barrier and advanced technology integration [4] Summary by Sections Financial Performance - For Q3, the company achieved a revenue of 470 million RMB, a 7.3% increase year-on-year, with net profit and net profit excluding non-recurring items reaching 27.7 million RMB and 23.4 million RMB respectively [4] - The projected net profits for 2024-2026 are estimated at 197 million RMB, 296 million RMB, and 386 million RMB, with corresponding EPS of 0.48 RMB, 0.73 RMB, and 0.95 RMB [5][4] Market Position - The company has a robust data foundation, covering nearly 8 million enterprises and over 10 million relationship knowledge graphs, which strengthens its competitive edge in the tax IT industry [4] - The report emphasizes the company's leading position in the financial technology sector, driven by its research in big data, cloud computing, and artificial intelligence [4] Valuation - The report adjusts the earnings per share (EPS) forecast downwards by 0.3% to 9.4% for the years 2024-2026, reflecting the company's AI research investments [4] - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 59X, 39X, and 30X respectively [5]