Seeyon(SH:688369)2024-02-18 16:00Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of RMB 40.00 [1][30]. Core Insights - The company is experiencing short-term performance pressure, but the new COP-V8 platform is expected to initiate a second growth curve [1][22]. - The product system is diverse, with the COP-V8 platform entering commercial operation and generating significant contract signings [1][12]. - The company is well-positioned to benefit from trends in information innovation and digital transformation, with anticipated revenue growth in software products and improved gross profit margins [22][30]. Summary by Sections Product and Revenue - The company’s collaborative management software product revenue reached RMB 916 million in 2022, accounting for 88.73% of total revenue [1][12]. - The COP-V8 platform has signed contracts worth over RMB 90 million since its commercial launch in May 2023 [1][12]. Contract Growth - In 2023, the company saw a contract signing amount growth of over 20% year-on-year, with new customer contracts increasing by over 28% [2][29]. - The market share among top clients is increasing, particularly with central enterprises, where contract amounts grew over 35% [2][29]. Technology and Strategy - The COP-V8 platform is built on a strong technical foundation, utilizing cloud-native technology and a microservices architecture to meet high-performance requirements [4][13]. - The company has embraced AI, launching the AI-COP framework and various innovative products aimed at enhancing collaborative operations [5][53]. Financial Forecast - The company forecasts revenue growth of 8.8%, 18.3%, and 15.1% for the years 2023, 2024, and 2025, respectively, with expected net profits of RMB -30 million, RMB 115 million, and RMB 146 million [22][30]. - Gross profit margins are projected to improve gradually, with estimates of 71.73%, 71.97%, and 72.21% from 2023 to 2025 [22][30].