Asiainfo Security(688225) 浙商证券·2025-01-24 08:23Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company expects significant revenue growth in 2024, with projected revenue between 3.11 billion to 4.26 billion yuan, representing a year-on-year increase of 93.40% to 164.91%. The net profit attributable to shareholders is forecasted to be between 8.50 million to 12.75 million yuan, marking a turnaround from losses [1] - The acquisition of AsiaInfo Technology is expected to enhance both revenue and profit, with the consolidation effect starting from November 9, 2024. The company aims to develop a dual strategy of "security + digitalization" to extend and enhance its product lines, with synergistic effects anticipated to become more evident in 2025 [1] - The company's original network security business is projected to achieve a revenue growth of 14% to 19% in 2024, despite a general industry slowdown. The focus on high-value customer segments and the increase in standardized product revenue are contributing to this growth [2] - Cost control measures have shown significant results, with a reduction in R&D and management expenses, while sales expenses have increased but yielded positive outcomes in revenue growth. The net cash flow from operating activities is expected to improve significantly in 2024 [3] Financial Summary - The company forecasts revenues of 3.65 billion, 9.95 billion, and 10.56 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 0.12 billion, 1.80 billion, and 2.77 billion yuan for the same years [4][5] - The earnings per share (EPS) is expected to recover from a loss of 0.73 yuan in 2023 to 0.03 yuan in 2024, and further to 0.45 yuan and 0.69 yuan in 2025 and 2026 respectively [5] - The company’s total assets are projected to grow from 3.40 billion yuan in 2023 to 6.52 billion yuan in 2026, indicating a strong growth trajectory [10]