ZHI-TECH(SZ:300785) HTSC·2025-08-26 09:11Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 42.46 [6][11]. Core Insights - The company achieved a revenue of RMB 582 million in H1 2025, a year-over-year decrease of 18.70%, while net profit attributable to shareholders was RMB 12.69 million, an increase of 65.75% year-over-year [1]. - The decline in revenue is attributed to the strategic contraction of low-margin businesses and related business upgrades, while the increase in net profit is due to improved gross margins and cost reduction efforts [1]. - The "What Worth Buying" platform is expected to continue evolving and solidifying its competitive moat under the influence of AI, supported by long-term technological advantages [1]. User and Content Growth - The "What Worth Buying" app successfully completed an upgrade, enhancing user retention and activity through interest-based recommendations and AI services [2]. - In H1 2025, the platform saw a stable growth in users, with an average monthly active user count of 38.27 million, a year-over-year increase of 1.26% [2]. - The content published on the platform increased by 19.31% year-over-year to 34.04 million entries, with AIGC content rising by 73.63%, accounting for 52.51% of total content [2]. Commercialization and Product Development - The company launched the "Haina" MCP Server, a standardized consumer data service platform, which has already facilitated over 8.22 million content outputs by June 2025, reflecting a quarter-over-quarter growth of 81.73% [3]. - The platform's core interfaces allow partners to integrate functionalities into their own products, indicating a potential acceleration in commercialization [3]. Financial Performance and Projections - The gross margin for H1 2025 was 49.2%, an increase of 2.23 percentage points year-over-year, primarily due to the contraction of low-margin businesses [4]. - Research and development expenses decreased by 8.31% year-over-year to RMB 83 million, attributed to efficiency improvements through AI [4]. - The company forecasts net profits of RMB 131 million, RMB 157 million, and RMB 180 million for 2025, 2026, and 2027 respectively, with corresponding EPS of RMB 0.66, RMB 0.79, and RMB 0.91 [4][10].