NANCAL(SH:603859) Haitong Securities International·2025-06-17 12:31Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 38.97 [1][10]. Core Insights - The company is experiencing steady improvement in operational quality, with AI products and services achieving breakthrough growth, leading the intelligent transformation in the industrial software sector [1][10]. - The forecast for EPS is RMB 0.97 for 2025, RMB 1.26 for 2026, and RMB 1.65 for 2027, with a forward PE of 40x assigned for 2025 [10][11]. Financial Summary - Revenue is projected to grow from RMB 1.405 billion in 2023 to RMB 2.485 billion by 2027, reflecting a CAGR of approximately 20.1% [3][5]. - Net profit attributable to shareholders is expected to fluctuate, with a decline to RMB 192 million in 2024, followed by a recovery to RMB 403 million by 2027 [3][5]. - The company’s operating cash flow improved significantly, reaching RMB 519 million in 2024, a 64.87% increase [11]. Business Segments - AI products and services revenue is forecasted to surge from RMB 273 million in 2024 to RMB 1.032 billion by 2027, with an impressive growth rate of 1255.99% in 2024 [8][12]. - The cloud products and services segment is expected to grow steadily, with revenue increasing from RMB 458.24 million in 2024 to RMB 626.66 million by 2027 [8]. - The industrial engineering and electrical products segment is projected to grow from RMB 456.50 million in 2024 to RMB 658.53 million by 2027 [8]. Competitive Positioning - The company is focusing on optimizing its self-developed "Le Series" industrial software, enhancing its core competitiveness with 12 industry packages and 156 industrial components [13]. - The launch of the "Ling Series" AI agent aims to address various industry needs, showcasing the company's commitment to leading the digital and intelligent ecosystem in the industrial sector [12][13].