SERVYOU(603171)2025-05-05 03:43Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported better-than-expected performance in Q1 2025, with revenue of 449 million yuan, a year-on-year increase of 23.7%, and a net profit of 24.75 million yuan, although this represents a decline of 24.5% year-on-year [7] - The company is focusing on AI applications in tax compliance, which is expected to drive growth and cost savings [7] - Revenue forecasts for 2025-2027 have been adjusted, with expected revenues of 2.38 billion yuan, 2.98 billion yuan, and 3.86 billion yuan respectively [7] - The company is positioned as a rare player in the AI application field, with expectations for significant growth starting in 2026 [7] Financial Data and Earnings Forecast - Total revenue for 2024 is projected at 1.945 billion yuan, with a year-on-year growth of 6.4% [6] - The company achieved a gross margin of 55.2% in 2024, with a stable gross margin expected in the coming years [7] - The net profit for 2025 is forecasted to be 186 million yuan, reflecting a significant increase of 65.1% compared to 2024 [6] - The company’s operating cash flow showed a positive trend, with a net operating cash flow of 273 million yuan in 2024, up 12% year-on-year [7] Adjustments to Key Metrics - The number of B-end paying users is expected to increase from 789,000 to 813,000 for 2025E [9] - The average customer price for B-end services is adjusted downwards from 209 yuan to 196 yuan for 2025E [9] - The gross margin for B-end services is revised down from 76% to 70% for 2025E [9] Valuation and Market Comparison - The target market capitalization for the company is set at 24.5 billion yuan, indicating over 20% upside potential from the current market value [10] - The company is compared with peers in the SaaS sector, showing a slightly lower gross margin due to the specialized nature of its products [10]