Qi An Xin Technology (SH:688561) ZHESHANG SECURITIES·2025-05-15 07:10Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company faced a significant decline in revenue, with a 32.49% year-on-year decrease, resulting in a net loss of 1.379 billion yuan in 2024. This decline was attributed to macroeconomic fluctuations, reduced IT budgets from clients, and structural adjustments in industry demand [2][9] - Despite the short-term revenue pressure, the company has prioritized cash flow optimization, achieving a cash collection ratio of 109.40% and improving operating cash flow by 436 million yuan year-on-year, marking the best level since its listing [2] - The company has implemented effective cost control measures, with total expenses decreasing by 12.66% in 2024, although revenue fluctuations have led to an increase in expense ratios, diluting the cost reduction effects [3] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 4.349 billion yuan, a decrease of 32.49% year-on-year, and a net profit attributable to shareholders of -1.379 billion yuan, indicating a shift from profit to loss [9] - For Q4 2024, the company recorded revenue of 1.639 billion yuan, down 40.55% year-on-year, with a net profit of -203 million yuan [9] - The Q1 2025 report showed revenue of 686 million yuan, a slight decline of 2.65% year-on-year, with a net loss of 418 million yuan, indicating a narrowing of losses [9] Strategic Initiatives - The company has introduced a "Four Focus" strategy aimed at achieving steady revenue growth by concentrating on core products, key customers, enhancing distributor effectiveness, and expanding into overseas markets [4] - The company plans to leverage AI technologies to enhance its product offerings, particularly in threat detection and security operations, through collaborations and the optimization of its proprietary detection engines [4] Future Outlook - Revenue projections for 2025-2027 are estimated at 4.435 billion, 4.608 billion, and 4.849 billion yuan, respectively, with a gradual recovery in profitability expected, although the company will continue to face short-term performance pressures [10] - The company aims to achieve a net profit of -309 million yuan in 2025, with expectations of returning to profitability by 2027 [10]