Investment Rating - The report gives a "Strong Buy" investment rating for the company [3]. Core Viewpoints - The company is a leading provider of digital transformation services with a comprehensive stack of capabilities, including consulting, R&D, delivery, integration, operation, decision-making, and service [12][8]. - The company has a significant market share in the telecom BOSS software market, holding 35.5% domestically and ranking second globally [8]. - The AI large model delivery business is gaining momentum, with over 30 signed orders for 2024, showcasing the company's ability to leverage AI in high-value scenarios [8]. - The company is focusing on enhancing its data-driven operations and has seen substantial growth in its smart operation business across various industries [8]. - Future profit forecasts indicate a rebound in net profit from 2025 onwards, with expected growth rates of 56% in 2026 and 16% in 2027 [8]. Financial Data and Valuation - Total revenue for 2023 is projected at 7,913 million, with a year-on-year growth of 2% [2]. - The company expects a decline in revenue in 2024 to 6,646 million, a decrease of 16% [2]. - Net profit for 2023 is estimated at 533 million, reflecting a significant drop of 36% compared to the previous year [2]. - The company’s PE ratio is projected to decrease from 14.9 in 2023 to 9.7 by 2027, indicating an improving valuation over time [2]. Business Overview - The company operates in various sectors, including telecommunications, government, finance, energy, and transportation, providing end-to-end digital transformation services [12][13]. - The BSS business accounts for 60.9% of the revenue, while the OSS and smart operation businesses contribute 12.3% and 16.6%, respectively [13]. - The company has a strong focus on vertical industry digitalization, particularly in finance, energy, and transportation [13][14]. Historical Development - The company has evolved from a telecom software leader to a digital transformation pioneer since its establishment in 1993 [23]. - Significant milestones include its listing on the Hong Kong Stock Exchange in 2018 and the acquisition of iResearch Consulting in 2022, enhancing its digital capabilities [24][23]. Governance Structure - The company has a concentrated and stable shareholding structure, with AsiaInfo Security becoming the largest shareholder in 2024 [25]. - The governance framework is designed to ensure long-term stability and strategic alignment with its parent company [25].
亚信科技（01675）：三十载筑基数智化转型，AI大模型交付定义行业新范式