WJP(SZ:301117) HTSC·2025-04-24 09:07Investment Rating - The report maintains a "Buy" rating for the company with a target price of 49.14 RMB [7][8]. Core Insights - The company achieved a revenue of 337 million RMB in 2024, representing a year-over-year increase of 48.11%, and a net profit of 11.45 million RMB, which is a significant increase of 313.82% year-over-year, although it fell short of the previous expectation of 20.78 million RMB due to higher impairment losses [1][4]. - The company is expected to maintain strong growth in the next three years, driven by robust downstream demand in the network information security industry, which is crucial for national security and economic stability [1][4]. - The company has made significant technological breakthroughs in AI network security optimization and has successfully bid for multiple research projects, which are expected to enhance its capabilities in network security [3]. Revenue and Profitability - In 2024, the military business generated 276 million RMB (up 50.47% year-over-year), the medical business generated 47.74 million RMB (up 25.32% year-over-year), and the government business generated 13.56 million RMB (up 118.58% year-over-year) [2]. - The overall gross margin for the company was 43.15%, a decrease of 4.92 percentage points year-over-year, primarily due to the increased proportion of lower-margin integrated information solutions [2]. - The gross margin improved to 47.28% in the first quarter of 2025, driven by a higher proportion of military business [2]. Financial Forecast and Valuation - The company is projected to achieve net profits of 70.79 million RMB, 111.74 million RMB, and 156.46 million RMB for the years 2025, 2026, and 2027, respectively [4][6]. - The report assigns a price-to-earnings (PE) ratio of 65 for 2025, leading to a target price of 49.14 RMB, reflecting an increase from the previous target of 42.24 RMB [4].