ZFINFO(SZ:300659) Guotai Junan Securities·2024-11-01 11:53Investment Rating - The report maintains a rating of "Accumulate" for the company [6][10]. Core Views - The company has shown a recovery in revenue growth in the third quarter, with losses continuing to narrow and an improvement in gross margin. The expense ratio has been decreasing, driven by policy support leading to a rebound in downstream demand, suggesting that performance may exceed expectations [2][10]. - The company is expected to achieve revenue of 954 million in 2024, with a projected net profit of -68 million, improving to a profit of 178 million in 2025 and 358 million in 2026 [10][11]. - The gross margin for the first three quarters of 2024 reached 61.80%, an increase of 6.07 percentage points year-on-year, indicating a shift towards higher-margin business [10][11]. Financial Summary - Revenue: - 2022A: 644 million - 2023A: 919 million - 2024E: 954 million - 2025E: 1,381 million - 2026E: 1,844 million - Year-on-year growth for 2023A is 42.6% and for 2024E is 3.9% [1][10]. - Net Profit (Attributable to Parent): - 2022A: -447 million - 2023A: -186 million - 2024E: -68 million - 2025E: 178 million - 2026E: 358 million - The net profit for 2023A shows a 58.3% improvement compared to 2022A [1][10]. - Earnings Per Share (EPS): - 2022A: -1.72 - 2023A: -0.72 - 2024E: -0.26 - 2025E: 0.68 - 2026E: 1.38 [1][10]. - Return on Equity (ROE): - 2022A: -37.7% - 2023A: -19.0% - 2024E: -4.8% - 2025E: 11.5% - 2026E: 19.5% [1][10]. Market Data - The company's market capitalization is approximately 4,419 million [3]. - The current stock price is 15.72, with a target price maintained at 25.73, indicating significant upside potential [6][10].