SHGBIT(SH:603918) Minsheng Securities·2025-04-30 11:08Investment Rating - The report gives a "Recommended" rating for the company, indicating a positive outlook for future performance [3][51]. Core Insights - The company is experiencing a turning point in its performance, with a significant revenue increase of 60% year-on-year in Q1 2025, suggesting a recovery from previous declines [2][22]. - The partnership with Ant Group is pivotal, as they are jointly developing a diversified dispute resolution platform that leverages AI technology to resolve financial disputes before litigation [1][14]. - The diversified dispute resolution platform has seen explosive growth, with revenue exceeding 45 million yuan in 2024, a 221% increase compared to 2023 [1][33]. Summary by Sections Company Overview - The company focuses on smart industry solutions, covering various sectors including government, law, education, and finance. It has established a long-term partnership with Ant Group to create a leading intelligent and standardized multi-dispute resolution platform [9][14]. Financial Performance - In 2024, the company reported a revenue of 699 million yuan, a 25% decline from the previous year, and a net loss of 61 million yuan. However, Q1 2025 showed a revenue of 101 million yuan, marking a 60% increase year-on-year, indicating a potential recovery [2][22][49]. - The company expects net profits to rebound significantly in the coming years, with projections of 38 million yuan in 2025, 105 million yuan in 2026, and 190 million yuan in 2027 [3][49]. Business Segments - The diversified dispute resolution business is expected to be a core growth driver, with the number of cases handled in 2024 increasing several times compared to the previous year. The platform has onboarded over 20 mediation organizations and more than 1,800 mediators [1][33]. - The company has also won a significant contract for the "Digital Court" project in Shanghai, valued at 12.22 million yuan, which includes key modules such as AI+Judiciary and data platforms, showcasing its technological capabilities [2][35]. Future Outlook - The company anticipates strong growth in its cloud computing and big data segments, particularly from its AI+Judiciary products, with expected revenue growth rates of 100% in 2025, 60% in 2026, and 50% in 2027 [43][51]. - The overall revenue forecast for 2025-2027 is projected to grow at a compound annual growth rate (CAGR) of 28%, driven by the rapid expansion of its innovative business lines [51].