SERVYOU(603171)2025-05-15 10:35Investment 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. However, the G-end business continues to pressure overall profits [1][8]. - EPS forecasts for 2025 and 2026 are set at 0.63 RMB and 0.87 RMB, respectively, with a new forecast for 2027 at 1.18 RMB. The current profit levels do not align with the revenue scale due to G-end drag [1][8]. - The company reported a revenue of 1.95 billion RMB in 2024, up 6.38% YoY, and a net profit attributable to shareholders of 113 million RMB, up 35.01% YoY [1][8]. Financial Summary - In Q1 2025, the company achieved a revenue of 449 million RMB, a 23.72% increase YoY, while the net profit attributable to shareholders was 25 million RMB, down 24.50% YoY [1][8]. - The company’s 2024 revenue from its ToB business was 1.18 billion RMB, up 8.46% YoY, with a net profit of 249 million RMB, up 1.60% YoY. The ToG business generated 763 million RMB in revenue, up 3.37% YoY, but incurred a net loss of 136 million RMB, reducing losses significantly from 2023 [1][8]. - The report highlights that the company’s AI products now contribute over 20% to its digital tax business revenue, indicating a strong integration of AI into its service offerings [1][8].