NANCAL(SH:603859) Minsheng Securities·2025-04-27 10:57Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 30.03 yuan [6]. Core Insights - The company achieved a revenue of 1.51 billion yuan in 2024, representing a year-on-year growth of 7.47%. However, the net profit attributable to shareholders decreased by 15.17% to 192 million yuan. The operating cash flow increased significantly by 64.87% to 519 million yuan [1]. - The AI products and services experienced a remarkable revenue growth of 1255.99%, reaching 273 million yuan in 2024, with a gross margin of 39.32%, an increase of 14.43 percentage points year-on-year. The company has developed the "Ling Series" AI agent product system, which has been applied in various scenarios such as robotics training, automotive product design optimization, and high-end equipment AI quality inspection [2]. - The industrial software product matrix continues to expand, with steady growth in core business areas. The cloud products and services generated 458 million yuan in revenue, up 6.68% year-on-year. The software systems and services saw a decline of 39.91% to 316 million yuan. The industrial engineering and electrical products and services achieved a revenue of 456 million yuan, growing by 8.01% [3]. Summary by Sections AI Business - The company is focusing on the application of AI technology in industrial software, with significant breakthroughs in AI products and services. The strategic partnerships with major companies like Huawei, Siemens, and Amazon are aimed at developing multi-scenario solutions for key industry areas [4]. Financial Forecast - The company is projected to achieve revenues of 1.725 billion yuan, 1.987 billion yuan, and 2.321 billion yuan for the years 2025, 2026, and 2027, respectively. The earnings per share (EPS) are expected to be 0.93 yuan, 1.11 yuan, and 1.34 yuan for the same years. The price-to-earnings (PE) ratios are forecasted to be 32X, 27X, and 22X [5][10].