ZHI-TECH(SZ:300785) Orient Securities·2025-05-14 07:08Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.40 CNY per share, based on a projected 60x PE for 2025 [2][4]. Core Insights - The company's main business remains stable, with growth potential driven by AI empowerment and overseas expansion [1]. - The financial performance shows a gradual recovery, with 2024 revenue expected to reach 1.52 billion CNY, a year-on-year increase of 4.5% [7]. - The company is focusing on enhancing its app's content ecosystem through AI, with a significant increase in AI-generated content [7]. Financial Forecasts - The projected net profit for the company from 2025 to 2027 is 127 million CNY, 145 million CNY, and 181 million CNY respectively, reflecting a growth rate of 68.4% in 2025 [2][3]. - Revenue is expected to grow from 1.70 billion CNY in 2025 to 2.32 billion CNY in 2027, with a compound annual growth rate of approximately 20.6% [3][10]. - The gross margin is projected to stabilize around 46.9% to 47.6% over the forecast period [3][10]. Business Developments - The company has successfully implemented an AI strategy, leading to a 19.31% increase in content published on its app, with AI-generated content accounting for 44.1% of total content [7]. - The overseas revenue is expected to grow, with a 19.9% increase in 2024, indicating a positive outlook for international expansion [7].