ROYALFLUSH INFO(300033) Soochow Securities·2024-11-17 11:44Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company has received an administrative supervision decision from the China Securities Regulatory Commission, requiring its subsidiary, Zhejiang Tonghuashun Cloud Software Co., Ltd., to rectify violations and suspend new customer acquisition for three months. This is not expected to significantly impact the overall performance of the company [3][4] - The cloud software company generated revenue of 199 million yuan in 2023, accounting for 5.58% of the consolidated revenue of Tonghuashun. The administrative measures mainly affect new customer acquisition and do not impact services to existing customers [3][4] - The capital market's activity is expected to improve due to a series of supportive policies, which will benefit the company's C-end business revenue growth. The impact of the cloud software violation on the company's performance is considered limited [5] Summary by Sections Financial Forecasts and Valuation - The company’s total revenue for 2022 was 3,559 million yuan, with a slight increase to 3,564 million yuan in 2023. Projections for 2024, 2025, and 2026 are 3,784 million yuan, 4,391 million yuan, and 5,030 million yuan respectively, indicating growth rates of 6.18%, 16.03%, and 14.55% [2][5] - The net profit attributable to the parent company for 2022 was 1,691 million yuan, which decreased to 1,402 million yuan in 2023. Expected profits for 2024, 2025, and 2026 are 1,443 million yuan, 1,657 million yuan, and 1,902 million yuan, reflecting growth rates of 2.90%, 14.82%, and 14.81% respectively [2][5] - The report maintains previous profit forecasts, with projected net profits of 14.4 billion yuan, 16.6 billion yuan, and 19.0 billion yuan for 2024, 2025, and 2026 [5] Market Data - The closing price of the stock is 272.50 yuan, with a market capitalization of 146,496 million yuan and a circulating A-share market value of 74,525.91 million yuan [8] - The stock has a price-to-earnings (P/E) ratio of 104.46 for 2023, projected to decrease to 101.51 in 2024, 88.41 in 2025, and 77.01 in 2026 [2][5]