Newtouch(SH:688590) Huaxin Securities·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance over the next 12 months [24][32]. Core Insights - The company is a leading player in the software services sector, focusing on IT solutions for industries such as insurance and banking. It has shown significant revenue growth, with projected revenues of 1.687 billion, 2.135 billion, and 2.623 billion yuan for 2023, 2024, and 2025 respectively, reflecting growth rates of 28.2%, 26.6%, and 22.9% [3][24]. - The company has successfully turned around its profitability, with a forecasted net profit of 77 million yuan in 2023, 151 million yuan in 2024, and 192 million yuan in 2025, after a loss of 52 million yuan in 2022 [3][24]. - The introduction of the "New Knowledge Platform" in the AI sector is expected to drive further growth and innovation, enhancing the company's competitive edge and expanding its market share [24][32]. Financial Projections - Main revenue (in million yuan): 2022A: 1,315; 2023E: 1,687; 2024E: 2,135; 2025E: 2,623 [3]. - Growth rates: 2023E: 28.2%; 2024E: 26.6%; 2025E: 22.9% [3]. - Net profit (in million yuan): 2022A: -52; 2023E: 77; 2024E: 151; 2025E: 192 [3]. - EPS (in yuan): 2022A: -0.22; 2023E: 0.30; 2024E: 0.59; 2025E: 0.75 [3]. - ROE (%): 2022A: -3.7%; 2023E: 5.2%; 2024E: 9.6%; 2025E: 11.2% [3]. Market Position and Strategy - The company is actively increasing its investment in AI and cloud computing technologies, which are expected to contribute significantly to its revenue growth and market expansion [24][32]. - The report highlights the company's commitment to digital transformation for its clients, leveraging AI to enhance business processes and operational efficiency [24][32].