Hundsun(SH:600570) SINOLINK SECURITIES·2025-08-24 12:39Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][12]. Core Views - The company reported a revenue of 2.43 billion RMB for the first half of 2025, a year-on-year decline of 14.4%, with gross profit down 16.6% due to reduced client demand from financial institutions and increased market competition [2]. - Despite the revenue decline, the company's net profit attributable to shareholders after excluding non-recurring items was 190 million RMB, a year-on-year increase of 41.9% [2]. - The second quarter of 2025 saw revenues of 1.4 billion RMB, also down 15.0% year-on-year, but net profit attributable to shareholders increased by 59.8% to 180 million RMB [2]. - The best-performing business segments in the first half of 2025 were corporate finance, insurance core, and infrastructure IT product lines, with revenue growth of 4.9% and gross profit growth of 77.8% [3]. - The company anticipates a gradual recovery in its fundamentals in 2025, supported by the launch of the UF3.0 product and collaboration with Hong Kong brokers on virtual asset trading systems [3]. Financial Summary - Revenue projections for 2025 to 2027 are 5.98 billion, 6.21 billion, and 6.53 billion RMB, with year-on-year growth rates of -9.2%, 3.9%, and 5.1% respectively [4]. - Net profit attributable to shareholders is expected to be 1.12 billion, 1.45 billion, and 1.50 billion RMB for the same period, with growth rates of 7.7%, 28.7%, and 3.5% respectively [4]. - The company’s price-to-earnings (P/E) ratios are projected to be 64.8, 50.4, and 48.7 for 2025, 2026, and 2027 respectively [4].