Great Wall Securities·2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [18]. Core Insights - The company achieved a revenue of 1009.31 billion yuan in 2023, a year-on-year increase of 7.7%, with a net profit of 131.77 billion yuan, up 5.0% [2]. - The digital transformation business showed strong growth, contributing significantly to the overall revenue structure, with a 22.2% year-on-year increase in digital transformation revenue [2]. - The company plans to increase its dividend payout ratio to 75% over the next three years, reflecting a commitment to shareholder returns [22]. Financial Performance - Revenue growth rates are projected at 10.9% for 2024, 10.5% for 2025, and 9.5% for 2026 [25]. - The company's EBITDA for 2023 was 341.48 billion yuan, a 3.7% increase from the previous year [2]. - The return on equity (ROE) is expected to improve from 10.1% in 2023 to 11.4% by 2026 [25]. Digital Business Growth - The digital transformation revenue accounted for 89.7% of the main revenue increment, with the mobile cloud segment growing by 65.6% year-on-year [2]. - The company launched several industry-specific AI models, enhancing its operational capabilities and positioning in the market [8]. Future Projections - Forecasts for 2024-2026 include revenues of 1119.32 billion yuan, 1236.85 billion yuan, and 1354.35 billion yuan, respectively, with net profits projected at 143.66 billion yuan, 159.56 billion yuan, and 178.99 billion yuan [11].