DAS-Security(SH:688023) HTSC·2025-04-30 08:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 60.37 RMB [8][9]. Core Views - The company reported a revenue of 2.043 billion RMB for 2024, a year-on-year decrease of 5.87%, but the net profit attributable to the parent company improved to -237 million RMB from -388 million RMB in the same period last year, indicating a gradual recovery from the bottom [1][2]. - The integration of AI technology into the company's operations is expected to enhance efficiency and drive revenue growth, particularly in the AI security sector, which is anticipated to recover profitability in 2025 [1][3]. - The company has seen significant improvements in cash flow and cost management, with a notable reduction in expense ratios due to enhanced internal management and AI technology integration [2]. Summary by Sections Financial Performance - In 2024, the company's gross margin was 60.09%, a decrease of 1.69 percentage points year-on-year, while the operating cash flow turned positive at 161 million RMB compared to a negative 256 million RMB in 2023 [2][7]. - The first quarter of 2025 showed a revenue of 311 million RMB, a year-on-year increase of 10.80%, with a reduced net loss of 116 million RMB compared to 204 million RMB in the same period last year [1][2]. AI Technology and Product Development - The launch of the "Heng Nao" AI platform has significantly improved operational efficiency, with data classification efficiency increasing by 30 times and API risk detection efficiency improving by 200% [3]. - The company achieved over 17 million RMB in pure AI revenue in 2024, with indirect AI product revenue reaching 62 million RMB, indicating a strong market response to its AI offerings [3]. Market Demand and New Products - The demand for new data security products has surged, with contract amounts increasing by over 40% in 2024, particularly in API security and network DLP, which grew by 200% and 150% respectively [4]. - The company has successfully penetrated various sectors, including power, transportation, and big data, achieving revenue growth rates of over 70%, 40%, and 20% respectively [4]. Earnings Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been adjusted downwards by 15% and 16% to 2.287 billion RMB and 2.583 billion RMB respectively, with a projected revenue of 2.944 billion RMB in 2027 [5][14]. - The target price is set at 60.37 RMB, based on a price-to-sales ratio of 2.7 times, aligning with the average of comparable companies [5][15].