JSST(002609) Huachuang Securities·2025-05-14 10:45Investment Rating - The report upgrades the investment rating of the company to "Strong Buy" with a target price of 12.15 CNY, reflecting an expected outperformance of over 20% compared to the benchmark index in the next six months [3][8]. Core Views - The company reported a revenue of 1.579 billion CNY for 2024, a decrease of 4.01% year-on-year, and a net profit of 31 million CNY, down 72.04% year-on-year. However, Q1 2025 showed a revenue of 305 million CNY, an increase of 27.52% year-on-year, indicating a turnaround with a net profit of 1.5806 million CNY [2][4]. - The innovative business segment has significantly increased its contribution, with new contracts signed reaching 1.279 billion CNY in 2024, a year-on-year growth of 44%. The innovative business accounted for 42.48% of total revenue, with notable growth in parking asset management and software services [2][7]. - The company is focusing on an "AI + Parking" strategy, aiming to enhance operational efficiency and revenue generation through advanced data analytics and AI technologies [2][7]. Financial Summary - For 2024, total revenue is projected to be 1.579 billion CNY, with a year-on-year growth rate of -4.0%. The net profit is expected to be 31 million CNY, with a significant decline of 72.0%. The forecast for 2025-2027 shows revenues of 1.911 billion CNY, 2.293 billion CNY, and 2.733 billion CNY, with corresponding growth rates of 21.1%, 20.0%, and 19.2% respectively [2][8]. - The earnings per share (EPS) is projected to increase from 0.05 CNY in 2024 to 0.46 CNY by 2027, reflecting a strong recovery in profitability [2][8]. - The company maintains a healthy balance sheet with a debt-to-equity ratio of 15.8% and an asset-liability ratio of 32.34% [4][8].