ROYALFLUSH INFO(300033) Guotai Junan Securities·2024-11-17 07:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 280.57 CNY based on a 60x PE valuation for 2025 [12][22]. Core Views - The report highlights that the recent administrative measures taken against the company's subsidiary, due to issues in its investment advisory business, are expected to have a minimal impact on the company's overall performance. The subsidiary's revenue from this business was 199 million CNY, accounting for only 5.58% of the consolidated revenue [11][12]. - The company is projected to have an EPS of 3.00 CNY, 4.67 CNY, and 6.59 CNY for the years 2024, 2025, and 2026 respectively, supported by increasing trading volumes in the capital market [12]. Summary by Sections Company Events - The subsidiary, Zhejiang Tonghuashun Cloud Software Co., received an administrative regulatory decision from the Zhejiang Securities Regulatory Bureau due to various compliance issues in its investment advisory services. The measures include a three-month suspension of new client acquisitions, but existing client services will continue [11][12]. Financial Performance - The report anticipates that the administrative measures will have a limited effect on the company's revenue and profit for 2024, as the impacted business segment contributes a small portion to the overall revenue [12]. Market Context - The report notes that the capital market's trading volume is expected to continue increasing, which bodes well for the company's future earnings potential [12].