Topsec(002212) 中航证券·2025-01-23 04:31Investment Rating - The investment rating for the company is "Buy" with an expectation of more than 10% return relative to the CSI 300 index over the next six months [7]. Core Views - The company is expected to achieve revenue of 2.7 billion to 2.9 billion yuan in 2024, representing a year-on-year decline of 13.59% to 7.18%. However, it anticipates a net profit attributable to shareholders of 65 million to 90 million yuan, recovering from a loss of 371 million yuan in 2023 [1][2]. - The company has successfully turned losses into profits due to its continuous efforts in improving operational efficiency and cost control, particularly after completing its initial investments in new directions and technologies [2]. - The network security industry is expected to see a recovery in demand driven by digital technology advancements and increasing security threats, with the company expressing confidence in long-term growth prospects [2]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of approximately 3.12 billion yuan, with a net loss of 371 million yuan. For 2024, the projected revenue is 2.8 billion to 2.9 billion yuan, with a net profit forecasted to be between 65 million and 90 million yuan [1][10]. - The company aims for revenue growth in the coming years, with estimates of 2.8 billion yuan in 2024, 3.1 billion yuan in 2025, and 3.4 billion yuan in 2026, alongside a significant recovery in net profit [9][10]. Strategic Initiatives - The company has engaged in strategic partnerships, such as signing a memorandum of understanding with Huawei to develop security applications for the HarmonyOS NEXT, enhancing its position in the domestic operating system ecosystem [3]. - It has achieved recognition in the data security sector, being the only company to be included in all categories of the "2024 China Data Security Enterprise Panorama" [3]. Market Outlook - The report indicates that the network security industry is poised for growth, supported by government policies aimed at stabilizing economic growth and increasing demand from downstream customers [9]. - The company is focusing on enhancing its product offerings in areas such as data security and AI-driven network security solutions, which are expected to contribute to its growth trajectory [3].