Hundsun(SH:600570) China Post Securities·2024-03-25 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on expected performance relative to the market index [9]. Core Insights - The company achieved a revenue of 7.281 billion yuan in 2023, representing a year-on-year growth of 11.98%. The net profit attributable to shareholders was 1.424 billion yuan, up 30.50% from the previous year [5]. - The company has maintained a gross margin of 74.85%, the highest in three years, and has increased its R&D investment to 2.661 billion yuan, accounting for 36.55% of its revenue [5]. - The company is a leading provider of core systems in the securities industry and has successfully adapted its new generation core trading system to meet the requirements of the financial industry [6]. - The launch of the LightGPT model in 2023 has shown significant improvements in performance metrics, enhancing its capabilities in financial advisory and research [7][8]. - A strategic partnership with Huawei has been established to develop applications based on the HarmonyOS NEXT operating system, expanding the company's service offerings to over 60 financial institutions [8]. Financial Performance - The company reported a net profit of 1.424 billion yuan in 2023, with projections for EPS of 0.85, 1.08, and 1.25 yuan for 2024, 2025, and 2026 respectively [9]. - The projected revenue for 2024 is 8.082 billion yuan, with a growth rate of 10.99% [10]. - The company’s asset-liability ratio stands at 38.4%, indicating a stable financial structure [5]. Future Outlook - The company is expected to benefit from the ongoing financial technology transformation and product iterations, with a projected PE ratio decreasing from 31.92 in 2023 to 19.07 by 2026 [10]. - The report anticipates continued growth in revenue and net profit over the next few years, with a focus on enhancing its technological capabilities and market position [9][10].