Investment Rating - The report initiates coverage with a "Neutral" rating for the company, projecting a target price of 36.48 HKD based on cautious valuation methods [4][11]. Core Insights - The company is undergoing an AI strategic transformation, shifting focus from digital tax solutions to "Data Intelligence" applications, leveraging its data assets and AI capabilities [4][26]. - Revenue projections for 2025-2027 are estimated at 0.85 billion, 1.02 billion, and 1.18 billion RMB, with year-on-year growth rates of 29.18%, 19.16%, and 16.65% respectively [7][37]. - The net profit attributable to shareholders is expected to improve significantly, moving from a loss of 7.87 million RMB in 2025 to a profit of 107 million RMB by 2027, reflecting growth rates of 98.43%, 759.27%, and 105.56% [7][37]. Financial Summary - The company reported a total revenue of 6.59 billion RMB in 2024, a decrease of 8% year-on-year, with specific segments showing varied performance [23]. - The gross margin for 2024 was 40%, with cloud tax solutions achieving a gross margin of 52.2% and local deployment solutions at 23.6% [24]. - Significant cost control measures have been implemented, resulting in a reduction of sales and administrative expense ratios [25]. Business Overview - Founded in 2015, the company specializes in data-driven AI solutions, focusing on digital tax and data analytics services [15][34]. - The Baiwang Cloud Platform integrates various technologies, including digital certificates, AI, and blockchain, to provide comprehensive digital business solutions [16][34]. - The company serves a diverse client base, with 2,664 clients for local tax solutions and 28.4 million non-paying users for cloud solutions [22][37]. AI Strategic Transformation - The appointment of a new CEO, a former leader in AI, signals a commitment to enhancing AI capabilities within the company's operations [26]. - The strategic focus includes developing AI-driven solutions for digital tax and financial risk management, aiming to unlock the value of extensive transaction data [26][27]. Market Expansion - The company is actively entering the data element market, collaborating with national entities to establish a data resource registration system [27]. - This initiative aims to facilitate the circulation of data assets and enhance the overall data resource ecosystem in China [27].
百望股份（06657）：首次覆盖：开启AI战略转型，数据智能未来可期