HAND(SZ:300170) Xinda Securities·2025-01-20 10:00Investment Rating - The investment rating for the company is "Buy" [3][6]. Core Insights - The company is positioned as a core vendor for B-end applications of large AI models, with a promising outlook for its main business in high-end ERP solutions [4][10]. - The B-end AI Agent market in China is expected to grow significantly, with a projected market size of 171.8 billion yuan by 2025, reflecting a year-on-year growth of 150% [5][27]. - The company has a strong client base, having served over 6,000 enterprises, including more than 300 Fortune 500 companies, which enhances its market position [5][11]. - The company aims to replace traditional ERP systems with its self-developed products, leveraging its extensive experience in consulting, implementation, and software development [12][56]. Summary by Sections Company Overview - The company has a total market capitalization of 11.956 billion yuan and a total share capital of 9.85 billion shares, with a closing price of 12.14 yuan [3]. - The company has experienced a recent one-month stock price increase of 6.64% [3]. Financial Performance - The company forecasts revenue growth from 3.22 billion yuan in 2024 to 3.92 billion yuan in 2026, with year-on-year growth rates of 8.1%, 9.8%, and 11.0% respectively [6][7]. - The projected net profit for 2024 is 212 million yuan, increasing to 285 million yuan by 2026, with corresponding P/E ratios of 56, 49, and 42 [6][7]. Market Trends - The traditional ERP systems are gradually being decoupled, leading to a shift towards modular and AI-enhanced solutions, which the company is well-positioned to capitalize on [10][19]. - The company has initiated its AI intelligent application business, which is expected to generate approximately 25 million yuan in revenue in the first half of 2024 [5][19]. Strategic Partnerships - The company has established a deep partnership with ByteDance's Volcano Engine, enhancing its capabilities in deploying large AI models for enterprise applications [10][41]. - The collaboration has been recognized with awards for excellence in solution partnerships, indicating a strong alignment with industry leaders [42]. Product Development - The company has developed a comprehensive digital product system named HERO, which includes various platforms and applications aimed at facilitating digital transformation for enterprises [56].