同花顺：乘资本市场东风，启AI赋能新篇-20250213

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leading provider of internet financial information services in China, with nearly 30 years of industry experience. Its revenue growth is closely tied to the activity level of the capital market, which is expected to improve due to increased trading volumes [7][9]. - The company has a strong C-end user base and a broad channel network, with four main business segments showing promising growth prospects: value-added telecommunications, advertising promotion, fund sales, and software sales [9][34]. - The company has adopted a technology-driven approach, focusing on AI applications and innovations, which are anticipated to inject new vitality into its performance [9][8]. Summary by Sections Company Overview - The company has been a pioneer in the internet financial information service sector since its establishment in 1995, launching the first online securities trading system in China [16][17]. - The founder, Yi Zheng, holds a stable controlling stake of 36.13% as of Q3 2024, ensuring a stable ownership structure [19][20]. Financial Analysis - Revenue growth is significantly influenced by the activity level of the capital market, with historical growth rates of 443% in 2015 and 63% in 2020 during bull markets. The company expects strong revenue performance in 2024 due to increased trading activity [21][23]. - The company achieved a revenue of 3,559 million in 2022, with projections of 4,002 million in 2024 and 5,106 million in 2026, reflecting a compound annual growth rate (CAGR) of 12.3% to 13.2% [4][9]. - The net profit for 2024 is projected to be 1,516 million, with a growth rate of 8.1% [4][9]. Business Segments - Value-added telecommunications services are the backbone of the company's revenue, accounting for an average of 46% of total revenue from 2019 to 2023. The company has a large C-end user base, with approximately 625 million registered users as of mid-2024 [34][38]. - Advertising promotion services benefit from a leading C-end user scale and a strong competitive edge in the market, with significant growth potential as market conditions improve [34][9]. - Fund sales are expected to expand due to the accelerated growth of ETFs, while software sales will benefit from increased trading activity and IT investments in the securities industry [34][9]. Technological Innovation - The company has launched the financial dialogue model HithinkGPT, which integrates multi-modal capabilities and is positioned as a leading AI application in the financial sector [8][9]. - The company has committed to a strategy of "ALL in AI" since 2019, focusing on various AI applications across financial advisory, decision-making, and coding [9][8]. Profitability and Valuation - The company maintains a high gross margin, with an average of over 85% in recent years, and a net margin that has been around 50% until recent increases in R&D and sales expenses [26][28]. - The report forecasts earnings per share (EPS) of 2.82, 3.23, and 3.81 for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 108.6x, 94.9x, and 80.3x [4][9].