TRS(SZ:300229) ZHONGTAI SECURITIES·2025-08-21 10:19Investment Rating - The investment rating for the company is "Accumulate" (maintained) [4] Core Views - The company reported significant improvement in operating net cash flow, with a year-on-year increase of 895.24% in H1 2025, driven by stable contributions from the public safety business and enhanced working capital management [5][6] - The company is committed to investing in cutting-edge technologies such as AI and data, with a research and development expense ratio of 27.3% in H1 2025, aiming to build long-term competitive advantages [6] - The company has signed multiple milestone projects across various sectors, including finance, public security, and government, with a notable contract in the public safety sector amounting to nearly 20 million yuan [6][5] Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 245 million yuan and a net profit attributable to shareholders of -74 million yuan [5] - The revenue forecast for 2023A to 2027E shows a recovery trend, with expected revenues of 888 million yuan in 2025E and 1.291 billion yuan in 2027E, reflecting a growth rate of 14% and 22% respectively [4][7] - The net profit is projected to recover significantly from -94 million yuan in 2024A to 203 million yuan in 2027E, with a growth rate of 208% in 2025E [4][7] Market and Industry Trends - The company faces short-term revenue pressure due to a slowdown in information technology investments and reduced downstream demand, but it remains focused on R&D in AI and data [6] - The public safety segment reported revenue of 103 million yuan in H1 2025, a year-on-year increase of 20.68%, with special industry contracts growing by 61% [6] - The company is also expanding its international market presence, with successful project renewals in Hong Kong and new contracts in other countries [6] Valuation and Future Outlook - The company is transitioning towards a "data + intelligence" strategy, with expected net profits of 102 million yuan in 2025E, corresponding to a PE ratio of 225.5x [4][6] - The projected net profit growth rates for 2025E to 2027E are 208%, 39%, and 43% respectively, indicating a strong recovery trajectory [4][7]