GIT(SZ:300465) Haitong Securities International·2025-09-29 11:36Investment Rating - The report initiates coverage with an "Outperform" rating and sets a target price of RMB 30.69 for 2026, based on the company's growth potential in AI and financial big data services [1][5][33]. Core Insights - The company, established in 1998, is a veteran bank IT service provider with over 20 years of experience, focusing on providing comprehensive IT solutions to financial institutions, including banks, insurance, and securities [17][34]. - The company is advancing its partnership with Ant Group to explore AI applications in banking, particularly in credit scenarios, aiming to create a closed-loop capability of "technology-scenario-implementation" [5][35][21]. - The establishment of an AI and financial big data division aims to build a leading financial AI Agent service platform, focusing on innovative revenue-sharing business models [5][24][35]. - The company has made a strategic investment in Digital Asset Clearing Services Co., Ltd. (DACS), positioning itself as a bridge for integrating traditional finance with Web3.0 and digital RMB [5][25][36]. Financial Summary - The company forecasts total revenue for 2025-2027 to be RMB 15.42 billion, RMB 20.12 billion, and RMB 25.45 billion, with year-on-year growth rates of 31%, 30%, and 26% respectively [3][12]. - Net profit attributable to the parent company is projected to be RMB 0.44 billion, RMB 1.10 billion, and RMB 2.32 billion for the same period, reflecting significant growth rates of 42%, 149%, and 110% [3][12]. - The report anticipates EPS of RMB 0.10, RMB 0.25, and RMB 0.52 for 2025, 2026, and 2027 respectively [3][12]. Business Segmentation - The company segments its business into software, system integration, and innovative services, with expected revenue growth rates of 10%, 8%, and 5% for software services from 2025 to 2027 [9][11]. - The system integration business is expected to maintain a smaller scale, with a projected growth rate of 40% in 2025, followed by stagnation [9][11]. - The innovative business, focusing on AI applications, is expected to see substantial growth, with revenues projected at RMB 2.10 billion, RMB 5.88 billion, and RMB 10.58 billion for 2025-2027 [9][11]. Market Trends - The financial technology investment in China has been increasing, with a notable rise from RMB 225.26 billion in 2019 to RMB 355.81 billion in 2023, indicating a compound annual growth rate of 14.48% [19][20]. - The bank IT solutions market is also expanding, with a CAGR of 11% for bank IT investments and 8% for the bank IT solutions market from 2019 to 2023 [19][20].