Weaver Network(SH:603039) SINOLINK SECURITIES·2025-08-15 01:22Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][12]. Core Views - The company reported a revenue of 810 million RMB for the first half of 2025, a year-on-year decline of 8.8%, while the net profit attributable to the parent company after deducting non-recurring gains and losses was 58 million RMB, a significant increase of 79.9% [2]. - The decline in revenue is attributed to a drop in both software and technical service revenues, with software revenue down 10.2% and technical service revenue down 6.5% [3]. - The increase in net profit is primarily due to cost reduction measures, with total costs and expenses decreasing by 10.1%, outpacing the revenue decline [3]. Summary by Sections Performance Review - In Q2 2024, the company achieved a revenue of 480 million RMB, down 11.6% year-on-year, while the net profit attributable to the parent company was 34 million RMB, up 130.2% year-on-year [2]. Business Analysis - The company is actively expanding overseas and has established localized teams in countries such as Singapore and Indonesia to address challenges in its domestic business [3]. - The company has developed a product matrix with fourteen specialized products and introduced the Xiaoe.AI platform, which supports customizable training for various business functions [3]. Profit Forecast and Valuation - Revenue projections for 2025 to 2027 are estimated at 2.21 billion RMB, 2.07 billion RMB, and 1.995 billion RMB, reflecting a year-on-year decline of 7.7%, 6.3%, and 3.6% respectively [4]. - The net profit attributable to the parent company is forecasted to be 250 million RMB for 2025, with a growth rate of 41.0%, followed by a slight decline in subsequent years [4].