SERVYOU(603171) Haitong Securities International·2025-05-15 08:53Investment Rating - The report maintains an "Outperform" rating for the company with a target price of 50.17 RMB per share, representing a potential upside of 49% from the current price of 44.20 RMB [1][8]. Core Insights - The company has entered a high growth phase, with Q1 2025 revenue growth exceeding 20% for the first time since Q2 2021. The revenue for 2024 was 1.95 billion RMB, up 6.38% year-on-year, while the net profit attributable to shareholders was 113 million RMB, up 35.01% year-on-year [1][8]. - The company is actively expanding its sales channels, which is reflected in the increase in operating costs and sales expenses. The B-end business is growing steadily, while the G-end business has significantly reduced its losses [8]. - The company is leveraging AI technology through its "Xiyou" platform to enhance its SaaS products, aiming to create a comprehensive tax and finance application ecosystem [8]. Financial Summary - The company's revenue is projected to grow from 1.83 billion RMB in 2023 to 3.53 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 23.5% [3]. - Net profit attributable to shareholders is expected to increase from 83 million RMB in 2023 to 482 million RMB in 2027, reflecting a significant growth trajectory [3]. - The earnings per share (EPS) forecast for 2025 is 0.63 RMB, increasing to 1.18 RMB by 2027, indicating strong profitability growth [3][8]. Business Segments - The ToB (business-to-business) segment achieved revenue of 1.18 billion RMB in 2024, up 8.46% year-on-year, while the ToG (government-to-business) segment generated 763 million RMB, up 3.37% year-on-year, although it still reported a net loss [8]. - The active enterprise users on the Yiqiying platform reached 10.70 million, a 30.5% increase from early 2024, with 7.07 million paying users, up 24.5% [8]. AI Integration - AI products now contribute over 20% to the revenue of the digital tax business, highlighting the importance of AI in the company's future growth strategy [8].