Bonree(SH:688229) Tebon Securities·2025-05-12 06:23Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leader in IT operations monitoring and observability in China, with a focus on upgrading its main business and enhancing profitability through new product launches [5][9]. - The new product, Bonree ONE, is expected to enter a growth phase, benefiting from partnerships with major players like Huawei and ByteDance [5][9]. - The company has shown signs of revenue stabilization and growth, with projected revenues increasing significantly in the coming years [5][9]. Summary by Sections 1. Company Overview - The company is the first A-share listed firm in the application performance monitoring and observability (APMO) sector in China, holding a 19.8% market share as of H2 2024 [5][9]. - It has a strong technical foundation with numerous patents and software copyrights, enhancing its competitive edge [9][19]. 2. Business Performance - Revenue for 2024 is projected at 141 million yuan, a year-on-year increase of 16.4% [5][4]. - The company has experienced a decline in net profit in recent years but is expected to narrow losses significantly in 2025 [5][4]. 3. Product Development - Bonree ONE represents a significant upgrade from previous products, integrating various monitoring capabilities and utilizing AI for enhanced data analysis [5][9]. - The product is designed to meet the increasing demand for unified monitoring solutions due to the growing complexity of IT systems [5][40]. 4. Market Trends - The demand for APM solutions is expected to grow as digital transformation accelerates and IT environments become more complex [5][40]. - The global data volume is projected to increase significantly, driving the need for advanced monitoring and observability solutions [5][41]. 5. Financial Projections - Revenue forecasts for 2025-2027 are 172 million, 234 million, and 301 million yuan, respectively, with significant year-on-year growth rates [5][4]. - The company aims to achieve profitability by 2025, with net profit projections showing a substantial recovery [5][4].