Topsec(SZ:002212) Great Wall Securities·2025-05-08 13:52Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of 5% to 15% relative to the industry index over the next six months [4]. Core Views - The company is focused on improving operational efficiency and restoring profitability, achieving a turnaround in 2024 with a net profit of 0.83 billion yuan, despite a revenue decline of 9.73% [2][3]. - The company is expanding into cloud computing and intelligent computing infrastructure, enhancing its profit margins and market competitiveness [2][3]. Financial Performance Summary - Revenue: The company reported revenues of 3,124 million yuan in 2023, projected to decline to 2,820 million yuan in 2024, before recovering to 3,114 million yuan in 2025, with a growth rate of 10.4% [1][3]. - Net Profit: The company experienced a net loss of 371 million yuan in 2023, but is expected to achieve a net profit of 83 million yuan in 2024 and 130 million yuan in 2025, reflecting a significant recovery [1][3]. - Gross Margin: The gross margin improved by 0.85 percentage points in 2024 and is projected to increase further by 10.15 percentage points in the first quarter of 2025 [2]. - Earnings Per Share (EPS): The EPS is expected to rise from -0.31 yuan in 2023 to 0.07 yuan in 2024, and further to 0.11 yuan in 2025 [1][3]. Market and Business Strategy - The company is actively responding to industry trends and market conditions by maintaining marketing investments and exploring new business opportunities, particularly in integrated machine solutions [3]. - The report highlights the company's strategic focus on enhancing revenue quality and controlling costs, which has led to improved profitability despite declining revenues [2][3].