Genimous Technology(SZ:000676) Guotou Securities·2025-09-01 03:45Investment Rating - The report maintains a "Buy-A" rating for the company, with a 12-month target price of 14 CNY [5]. Core Views - The company demonstrated operational resilience in revenue generation, achieving a revenue of 2.114 billion CNY in the first half of 2025, a year-on-year increase of 48.17%. However, the net profit attributable to shareholders decreased by 18.81% to 82 million CNY due to competitive pressures affecting gross margins [1][2]. - The company is diversifying its internet media business, with significant growth in mobile and browser segments. Mobile business revenue reached 352 million CNY, up 91%, while browser revenue was 184 million CNY, up 17.15% [2]. - The digital marketing business is shifting resources towards the Huawei Whale Hong Momentum, which is expected to enhance growth potential despite short-term pressure on margins. The digital marketing segment generated 1.345 billion CNY in revenue, an increase of 4.75 billion CNY [2][3]. Summary by Sections Financial Performance - In H1 2025, the company reported a comprehensive gross margin of 15.45%, a decrease of 2.24 percentage points year-on-year. The sales expense ratio was 2.6%, management expense ratio was 4.74%, and R&D expense ratio was 3.67% [1]. - The company forecasts net profits of 303 million CNY, 345 million CNY, and 414 million CNY for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.24 CNY, 0.28 CNY, and 0.33 CNY [3][8]. Market Position - The company is positioned as a rare listed entity within the Huawei marketing supply chain, expected to benefit from the stabilization of the competitive landscape in the Whale Hong Momentum agency sector [3][5]. - The stock has shown strong relative performance, with a 12-month return of 63.5% compared to the market index [6]. Valuation Metrics - The report estimates a price-to-earnings ratio of 50 times for 2026, indicating a target price of 14 CNY based on projected earnings growth [3][5].