SERVYOU(SH:603171) GF SECURITIES·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 38.21 CNY per share based on a comprehensive valuation of approximately 156 billion CNY [5][122]. Core Insights - The company's 2B business is driving growth, benefiting from natural synergies with its 2G business. The unique nature of tax information technology provides a competitive advantage in serving both government and enterprise clients. The company's direct sales system is a significant barrier to entry, and the revenue growth of the 2B business has been expanding in recent years, supported by digital operations and AI technology [1][2][3]. Summary by Sections 1. Business Performance - The company has established itself as a leading provider in the tax information technology sector, with a notable performance in its 2B business. The revenue growth rate for the 2B business has improved from -9.4% in 2020 to +10% in 2022 and +14% in the first half of 2023, driven by rapid growth in tax agency and innovative business services [12][90]. 2. Market Dynamics - The core drivers of tax information technology demand include legal compliance and tax planning, with additional needs arising from digital transformation. The company targets small and micro enterprises with integrated tax solutions and high-value services, which have led to an increase in average revenue per user (ARPU) [2][18][118]. 3. Financial Projections - The company forecasts revenues of 18.46 billion CNY, 22.26 billion CNY, and 27.51 billion CNY for the years 2023 to 2025, with year-on-year growth rates of 8.7%, 20.6%, and 23.6% respectively. The net profit attributable to the parent company is expected to be 1.39 billion CNY, 2.76 billion CNY, and 3.68 billion CNY for the same period, with growth rates of -3.6%, 99.4%, and 33.3% [30][122]. 4. Valuation Methodology - The report suggests using a segmented valuation approach, applying a PE ratio for the 2G business and a PS ratio for the 2B business. The 2G business is projected to have a revenue of 8.29 billion CNY in 2024, valued at approximately 16.57 billion CNY, while the 2B business is expected to generate 13.90 billion CNY, valued at around 139.05 billion CNY [122].