QIFAN(SH:605222) Soochow Securities·2025-04-29 10:35Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue performance is under short-term pressure, with growth in submarine cables awaiting opportunities [1] - The company experienced a decline in revenue and net profit in 2024, with total revenue of 22.76 billion yuan, down 2.5% year-on-year, and a net profit of 1.4 billion yuan, down 68% year-on-year [7] - The demand for land cables is slowing, while the volume of submarine cables is yet to be confirmed [7] - The company has a stable expense ratio and increased operating cash flow, with a net cash flow from operating activities of 5 billion yuan, up 9.3% year-on-year [7] - Due to intensified competition and a decline in gross margin, the profit forecasts for 2025 and 2026 have been lowered, with new profit forecasts for 2027 introduced [7] Financial Summary - Total revenue forecast for 2024 is 22.76 billion yuan, with a projected decline to 21.16 billion yuan in 2025, followed by a recovery to 22.84 billion yuan in 2026 and 23.55 billion yuan in 2027 [1][8] - The net profit forecast for 2025 is 2.86 billion yuan, increasing to 3.71 billion yuan in 2026 and 4.51 billion yuan in 2027, reflecting growth rates of 111%, 30%, and 21% respectively [7] - The company's earnings per share (EPS) is projected to be 0.33 yuan in 2024, increasing to 0.69 yuan in 2025, 0.90 yuan in 2026, and 1.09 yuan in 2027 [1][8] - The price-to-earnings (P/E) ratio is expected to be 44.67 in 2024, decreasing to 21.15 in 2025, 16.29 in 2026, and 13.42 in 2027 [1][8]