Hundsun(SH:600570) Huachuang Securities·2024-03-31 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 36.4 yuan, compared to the current price of 22.56 yuan [2]. 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% year-on-year [2]. - The report highlights the stable growth of core business segments, with notable performance in asset management technology and operational services, while wealth technology services experienced a slowdown [2]. - The introduction of the upgraded financial model, LightGPT, is expected to lead the industry towards a new ecosystem, enhancing the company's competitive edge [2]. Financial Performance Summary - Revenue Breakdown: - Wealth technology services: 1.734 billion yuan, up 4.27% year-on-year - Asset management technology: 1.712 billion yuan, up 9.27% year-on-year - Operational and institutional business: 1.436 billion yuan, up 14.32% year-on-year - Other segments, including banking and industry IT, showed strong growth, with increases of 23.10% and 19.06% respectively [2]. - Profitability Metrics: - Gross margin was 74.84%, an increase of 1.28 percentage points year-on-year - Net margin reached 19.82%, up 2.60 percentage points year-on-year - Operating cash flow was 1.261 billion yuan, reflecting a 10.82% increase year-on-year [2]. - Future Projections: - Expected revenues for 2024-2026 are projected at 8.115 billion, 9.006 billion, and 9.949 billion yuan, with corresponding growth rates of 11.4%, 11.0%, and 10.5% [8]. - Net profit forecasts for the same period are 1.737 billion, 2.027 billion, and 2.228 billion yuan, with growth rates of 21.9%, 16.7%, and 9.9% respectively [8]. Business Model and Innovations - The company has successfully launched new financial models and tools, including WarrenQ and the financial assistant Photon, which enhance investment research capabilities [2]. - The upgraded LightGPT model has shown significant improvements in various financial advisory functions, outperforming general models in multiple areas [2].