Newtouch(SH:688590) Shanxi Securities·2025-05-13 03:23Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for its stock performance in the near term [1][9]. Core Insights - The company has experienced a significant decline in net profit, with a reported decrease of 88.21% year-on-year for 2024, while revenue grew by 18.57% to 1.995 billion yuan [4][11]. - The company is rapidly advancing in AI commercialization, with expectations for substantial contributions to future earnings from AI products [9][7]. - The company is focusing on the insurance sector, leveraging AIGC technology and other business opportunities to drive revenue growth [5][6]. Financial Performance - In 2024, the company achieved a revenue of 1.995 billion yuan, with a year-on-year growth of 18.57%, while the net profit was only 0.08 billion yuan, reflecting a significant decline [4][11]. - The first quarter of 2025 showed a slight revenue increase of 0.21% year-on-year, with a net profit of 0.16 billion yuan, up 4.04% from the previous year [4]. - The company's gross margin for 2024 was reported at 25.23%, a decrease of 1.00 percentage points compared to the previous year, primarily due to stock option expenses [6]. Market Position and Strategy - The company is positioned as a leader in the domestic insurance IT sector and is integrating AIGC technology across its product lines [9][7]. - The company is expanding its client base beyond traditional banking to include asset management and brokerage firms to mitigate revenue pressures from core banking clients [5][6]. - The company has made significant investments in R&D and marketing, with sales and R&D expenses increasing by 43.81% and 12.57% respectively in 2024 [6]. Future Projections - The report forecasts earnings per share (EPS) of 0.38, 0.62, and 0.88 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 56.9, 35.2, and 24.7 [9][11]. - Revenue is expected to grow to 2.387 billion yuan in 2025, with a year-on-year growth rate of 19.6% [11].