Newtouch(SH:688590) China Post Securities·2024-02-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index over the next six months [2][8]. Core Insights - The company's performance met expectations, with a projected net profit attributable to shareholders of between 65 million and 83 million yuan for 2023, marking a turnaround from losses in the previous year [3][30]. - The company is actively investing in AI product development, with a significant event held on December 28 to showcase its advancements [4][30]. - The partnership with Huawei aims to expand the insurance integrated machine market, leveraging AI capabilities to provide solutions across various industries [13][26]. - The company has launched the "New Frontier, New Touch" initiative, focusing on AI applications in the insurance sector, which is expected to open new market opportunities [30][31]. Financial Summary - The company reported revenues of 1,315 million yuan in 2022, with projections of 1,656 million yuan for 2023, representing a growth rate of 25.9% [27]. - The net profit attributable to shareholders is expected to rise from a loss of 52 million yuan in 2022 to a profit of 73 million yuan in 2023, reflecting a growth rate of 241% [27]. - The earnings per share (EPS) are projected to be 0.29 yuan in 2023, with corresponding price-to-earnings (P/E) ratios of 51.01 [31].