Transwarp(SH:688031) Huachuang Securities·2025-05-31 04:15Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 52.93 CNY [1][7]. Core Insights - The company reported a revenue of 64.36 million CNY in Q1 2025, reflecting a year-on-year growth of 2.59%. However, it incurred a net loss of 83.58 million CNY [1][7]. - The company experienced a significant decline in revenue in 2024, with total revenue of 371 million CNY, down 24.31% year-on-year, and a net loss of 343 million CNY [1][7]. - The company is in a phase of technological investment and market expansion, with signs of improvement in cash flow and a reduction in losses in Q1 2025 [7]. Financial Performance Summary - 2024 Financials: Total revenue was 371 million CNY, with a net loss of 343 million CNY. The revenue from the core software business was 285 million CNY, down 28.5% year-on-year [3][7]. - 2025 Projections: Expected total revenue for 2025 is 427 million CNY, with a projected net loss of 238 million CNY, indicating a reduction in losses by 30.7% compared to 2024 [3][7]. - Future Growth: The company anticipates revenue growth of 15.0% in 2025, 19.0% in 2026, and 19.1% in 2027, with corresponding net losses decreasing over the same period [3][7]. Business Strategy and Developments - The company is focusing on AI strategy upgrades, with initial breakthroughs in large model business, including the launch of the Sophon LLMOps platform and the TKH knowledge platform [7]. - The company secured nearly 50 million CNY in orders related to large model business, covering sectors such as finance, government, and energy [7].