I2SOFT(BJ:830799) KAIYUAN SECURITIES·2024-02-14 16:00Investment Rating - The investment rating for the company is "Accumulate" (Maintain) [19] Core Views - The company provides comprehensive digital solutions primarily to major financial institutions, covering 15 out of 20 domestic systemically important banks and 22 out of 33 banks with assets exceeding 1 trillion yuan [19] - In the first three quarters of 2023, the company reduced its hardware business, leading to an increase in software business gross margin, achieving a revenue of 437 million yuan (+7%) and a net profit of 39.6 million yuan (+26%) with a gross margin of 33% [19] - The company is optimistic about its future development in participating in the financial innovation system construction [19] Financial Summary - Revenue (in million yuan): - 2021: 421 - 2022: 606 - 2023E: 618 - 2024E: 800 - 2025E: 1,041 - Year-over-Year (YOY) growth: 2023E: +1.9%, 2024E: +29.5%, 2025E: +30.1% [6] - Net Profit (in million yuan): - 2021: 50 - 2022: 52 - 2023E: 70 - 2024E: 91 - 2025E: 115 - YOY growth: 2023E: +35.4%, 2024E: +30.0%, 2025E: +26.8% [6] - Gross Margin: - 2021: 34.1% - 2022: 31.3% - 2023E: 33.2% - 2024E: 33.4% - 2025E: 33.1% [6] - Earnings Per Share (EPS): - 2023E: 0.33 yuan - 2024E: 0.43 yuan - 2025E: 0.55 yuan [6] Strategic Developments - The company has engaged new clients such as Agricultural Bank of China and Bank of China Consumer Finance, focusing on the application of new technologies like artificial intelligence [4] - The company has a talent pool of nearly 1,000 individuals certified in HarmonyOS development, which is crucial for the construction of HarmonyOS-based electronic channels for banking clients [5]