Topsec(SZ:002212) GOLDEN SUN SECURITIES·2024-10-29 02:38Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company achieved profitability in Q3 2024, with a revenue of 709 million yuan, a year-on-year increase of 10.21%, and a net profit attributable to shareholders of 36 million yuan, marking a turnaround with a year-on-year growth of 200.73% [1]. - The company is effectively implementing a quality improvement and efficiency enhancement strategy, with total expenses decreasing by 5.26% year-on-year in the first three quarters of 2024 [1]. - New business segments are showing rapid growth, with cloud computing revenue increasing by 9.98% and cloud security revenue soaring by 126.40% year-on-year in the first three quarters of 2024 [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 709 million yuan and a net profit of 36 million yuan, indicating a significant recovery from losses [1]. - For the first three quarters of 2024, the company’s total revenue reached 994 million yuan, with a notable increase in net profit [1][3]. - The company’s expenses have been effectively controlled, with R&D expenses decreasing by 8.05% and management expenses dropping by 24.18% year-on-year [1]. Revenue Structure - The revenue from basic security products accounted for 62.82% of total revenue, while cloud computing and cloud security products saw an increase of 11.58% [2]. - The government and public institutions sector contributed 44.78% of total revenue, although it experienced a decline of 16.46% year-on-year [2]. - Revenue from state-owned enterprises increased by 25.40%, indicating a growing market share in this segment [2]. Business Development - The company is making substantial progress in key industries, with significant order growth in the healthcare sector (nearly 60%) and a 20% increase in orders from enterprise groups [3]. - The company’s new business initiatives are entering a harvest phase, contributing positively to overall revenue growth [3]. Future Projections - The company is projected to achieve revenues of 3.44 billion yuan, 3.96 billion yuan, and 4.56 billion yuan for the years 2024, 2025, and 2026, respectively [3][7]. - Net profit is expected to reach 245 million yuan, 338 million yuan, and 467 million yuan for the same years [7].