SERVYOU(SH:603171) Great Wall Securities·2024-10-31 03:44Investment Rating - The investment rating for the company is "Add" (维持评级) [2] Core Views - The company has shown revenue growth, with a reported revenue of 1.284 billion yuan in Q3 2024, representing a year-on-year increase of 7.38%. The net profit attributable to shareholders was 116 million yuan, up 12.06% year-on-year [2][3] - The company is leveraging AI technology to enhance high-value products, with its "Xiyou" model receiving official recognition, indicating significant progress in the application of algorithms in the finance and taxation sector [4] - The company is expected to benefit from the ongoing tax reform trends, as outlined in recent government directives aimed at deepening fiscal and tax system reforms [4][6] Financial Performance Summary - For the fiscal year 2022, the company reported a revenue of 1.698 billion yuan, which is projected to grow to 2.858 billion yuan by 2026, reflecting a compound annual growth rate (CAGR) of 21.3% [1][6] - The net profit attributable to shareholders is expected to increase from 144 million yuan in 2022 to 440 million yuan in 2026, with a significant growth rate of 52.8% in 2026 [1][6] - The company's earnings per share (EPS) is projected to rise from 0.35 yuan in 2022 to 1.08 yuan in 2026, indicating a strong upward trend in profitability [1][6] AI and Product Development - The "Xiyou" model is designed to provide integrated services across various business segments in the finance and taxation field, enhancing user experience through intelligent and efficient solutions [4] - The company plans to continue developing AI product services and introduce more high-value products, particularly targeting small and micro enterprises with cloud-based solutions [4] Market Outlook - The company is positioned to benefit from the clear trends in tax reform, which are expected to enhance its market opportunities in the long term [4][6] - The projected financial metrics indicate a positive outlook, with revenue and profit growth expected to align with the anticipated industry developments [6]