Topsec(SZ:002212) Guohai Securities·2024-10-29 06:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][24]. Core Insights - The company achieved a turnaround in profit in Q3 2024, with revenue of 709 million yuan, a year-on-year increase of 10.21%, and a net profit of 36 million yuan, marking a return to profitability [4][5][11]. - The company is focusing on enhancing its quality and efficiency strategies, which have shown positive results in controlling expenses and improving revenue quality [5][17]. - The company is actively investing in cloud computing R&D, with a focus on providing diverse capabilities to meet industry-specific needs [6][17][20]. Financial Performance - For the first three quarters of 2024, the company reported revenue of 1.582 billion yuan, a decrease of 3.98% year-on-year, and a net loss of 169 million yuan, which is an improvement of 31.83% year-on-year [4][11]. - The gross margin for the first three quarters of 2024 was 63.96%, an increase of 1.65 percentage points year-on-year, while the net margin was -10.71%, a decrease of 4.37 percentage points year-on-year [3][17]. - The company’s R&D expenses for the first three quarters of 2024 were 538 million yuan, a decrease of 8.05% year-on-year, reflecting a completed initial layout in new directions and technologies [6][17]. Business Development - The company is advancing multiple business lines steadily, with a focus on high-quality development based on its next-generation trusted network security architecture (NGTNA) [5][15]. - The company has launched the Tianwen large model system, integrating AI into its security architecture, enhancing its product offerings and solutions [7][22]. - The company is expanding its product portfolio, including new versions of firewalls, cloud security products, and AI-enabled security solutions [21][20]. Earnings Forecast - The company is expected to achieve revenues of 3.604 billion yuan, 4.221 billion yuan, and 4.926 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 251 million yuan, 319 million yuan, and 409 million yuan [24][27].