Yusys Technologies(300674) ZHONGTAI SECURITIES·2025-04-10 03:25Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [3][8]. Core Views - The company reported a revenue of 3.958 billion yuan in 2024, a year-on-year decline of 23.94%, while net profit increased by 16.4% to 384 million yuan [4][5]. - The company is actively focusing on AI applications and has announced plans to issue H-shares for listing on the Hong Kong Stock Exchange [5]. - The company’s gross margin improved to 29.02%, an increase of 3.08 percentage points year-on-year, with operating cash flow reaching a historical high of 941 million yuan, a 110.67% increase from the previous year [5]. Financial Performance Summary - Revenue Forecast: The company’s projected revenues for 2025, 2026, and 2027 are 4.208 billion yuan, 4.552 billion yuan, and 5.010 billion yuan respectively, with growth rates of 6%, 8%, and 10% [3][5]. - Net Profit Forecast: The expected net profits for the same years are 433 million yuan, 505 million yuan, and 607 million yuan, with growth rates of 14%, 17%, and 20% respectively [3][5]. - Earnings Per Share (EPS): The projected EPS for 2025, 2026, and 2027 are 0.62 yuan, 0.72 yuan, and 0.86 yuan respectively [3][5]. Revenue Breakdown - The company’s revenue from banking IT products and solutions was 3.461 billion yuan, accounting for 87.45% of total revenue, while non-banking IT products and solutions contributed 371 million yuan, or 9.37% [5]. - Major clients include state-owned commercial banks and joint-stock banks, which contributed 52.49% of total revenue [5]. Profitability Metrics - The company’s net profit margin for 2024 was 9.7%, with a return on equity (ROE) of 8% [3][5]. - The price-to-earnings (P/E) ratio is projected to decrease from 45.2 in 2023 to 24.2 by 2027, indicating improved valuation over time [3][5].