Sangfor Technologies (SZ:300454) Shanxi Securities·2025-02-28 02:37Core Insights - The report indicates that the company, 深信服 (300454.SZ), achieved annual performance in line with expectations, with a comprehensive upgrade in AI computing power layout [4][5] - The company reported a total revenue of 7.52 billion yuan for 2024, representing a year-on-year decrease of 1.86% [5] - The net profit attributable to shareholders for the year was 197 million yuan, a slight decline of 0.49% year-on-year, while the non-recurring net profit dropped significantly by 31.32% to 76 million yuan [5] Revenue and Profit Analysis - In Q4 2024, the company recorded revenue of 2.886 billion yuan, showing a slight increase of 1.13% year-on-year, and a net profit of 777 million yuan, which is a year-on-year increase of 4.46% [5] - The overall revenue decline was attributed to weak demand from downstream financial and other industries, although revenue began to recover starting from Q3 2024 [5] - The gross profit margin for 2024 decreased by approximately 3.67 percentage points compared to the previous year, primarily due to an increase in the proportion of cloud computing business and intensified market competition [5] Cost Management and Non-Recurring Gains - The company successfully implemented cost control measures, resulting in a reduction of the combined expense ratio for sales, management, and R&D by about 6.25 percentage points compared to the previous year [5] - Non-recurring gains for 2024 amounted to approximately 121 million yuan, an increase of 34 million yuan from 87 million yuan in 2023, which significantly impacted the decline in non-recurring net profit [5] AI Strategy and Product Development - The company launched its security GPT and AI computing power platform, marking a comprehensive layout for AI applications and computing power [5] - The security GPT is noted as the first security vertical large model launched in China, designed to assist users in achieving "autonomous driving" in security operations [5] - The company introduced the AICP computing power platform and upgraded its cloud platform to support AI capabilities, including new AI service offerings and an AI application innovation platform [5] Investment Outlook - As a leading player in network security and cloud computing in China, the company is expected to benefit from the explosive growth in AI demand, which could drive rapid growth in its cloud business [5] - The earnings per share (EPS) forecasts for 2024-2026 are projected at 0.46, 1.08, and 1.45 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 249.12, 106.79, and 79.50 based on the closing price of 115.51 yuan on February 26 [5]