Hundsun(SH:600570) Soochow Securities·2025-03-29 12:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The overall performance of the company has declined due to market fluctuations affecting financial institutions' technology investments, leading to a decrease in revenue and net profit [1] - Despite the downturn, the company is focusing on cost reduction and efficiency improvements while continuing to invest in core product development [1] - The capital market is expected to recover, but the technology investments from financial institutions have not shown a clear positive growth trend yet [1] Financial Performance Summary - In 2024, the company reported total revenue of 6.581 billion yuan, a year-on-year decrease of 9.62%, and a net profit attributable to shareholders of 1.043 billion yuan, down 26.75% year-on-year [1] - The company's net assets increased by 8% to 8.667 billion yuan compared to the end of 2023 [1] Business Segment Analysis - Wealth technology service revenue decreased by 17% to 1.4 billion yuan, with a gross margin decline of 1 percentage point to 76% [1] - Asset management technology service revenue fell by 8% to 1.6 billion yuan, with a gross margin decrease of 6 percentage points to 77% [1] - Operating and institutional technology service revenue decreased by 10% to 1.3 billion yuan, with a gross margin increase of 0.1 percentage points to 81.5% [1] - Other business segments, including risk and platform technology services, data services, and innovation services, also experienced revenue declines ranging from 1% to 8% [1] Cost and Expense Management - Operating costs increased by 1% to 1.8 billion yuan, with no significant changes [1] - Sales expenses decreased by 8% to 543 million yuan, while management expenses fell by 5% to 905 million yuan [1] - Research and development expenses decreased by 8% to 2.458 billion yuan, with a research expense ratio of 37% [1] Technological Innovation and Product Upgrades - The company has upgraded its overseas investment trading system GAMS3.0, enhancing integration with IT systems and improving digital capabilities [1] - The application of large models has accelerated customer demand analysis speed by three times and reduced local deployment resource consumption by 50% [1] - New systems and trading modes have been successfully implemented, significantly improving transaction performance and efficiency [1] Earnings Forecast and Valuation - The company has adjusted its earnings forecast, expecting net profits of 1.2 billion yuan in 2025, 1.4 billion yuan in 2026, and 1.7 billion yuan in 2027, with corresponding P/E ratios of 46, 40, and 33 times [1]