NORTHKING TECH(SZ:002987) Haitong Securities International·2025-07-17 07:33Investment Rating - The report maintains an "Outperform" rating for the company with a target price of 29.31 RMB [1][10]. Core Insights - The company is expected to benefit from the dual drivers of artificial intelligence (AI) and information innovation, alongside opportunities presented by stablecoins [1][10][12]. - Revenue projections for 2025-2027 are estimated at 5.17 billion RMB, 5.77 billion RMB, and 6.43 billion RMB, reflecting year-on-year growth rates of 11.43%, 11.66%, and 11.44% respectively [10][11]. - Net profit attributable to shareholders is projected to be 0.36 billion RMB, 0.41 billion RMB, and 0.48 billion RMB for the same period, with growth rates of 16.58%, 14.01%, and 16.12% [10][11]. - Earnings per share (EPS) are expected to be 0.42 RMB, 0.48 RMB, and 0.55 RMB for 2025, 2026, and 2027 respectively [10][11]. Financial Summary - The company’s revenue for 2023 is projected at 4.24 billion RMB, with a year-on-year growth of 15.5% [3]. - The net profit for 2023 is estimated at 0.348 billion RMB, showing a significant increase of 25.4% compared to the previous year [3]. - The company’s net asset return (ROE) is expected to be 13.7% in 2023, declining to 11.1% in 2024 before gradually increasing to 13.9% by 2027 [3][6]. - The price-to-earnings ratio (P/E) is projected to decrease from 66.69 in 2023 to 48.20 by 2027 [3][6]. Market Trends - Small and medium-sized banks and non-bank financial institutions are expected to grow at a rate faster than the overall market, with significant contributions to the company's revenue [11]. - The integration of AI into financial services is anticipated to create a surge in demand for digital intelligence and fintech applications, positioning the company to capitalize on this trend [12]. - The company has established a strong presence in the cryptocurrency sector, which may provide new opportunities in the stablecoin market, particularly in Hong Kong [13].