INESA-it(SH:600602) GOLDEN SUN SECURITIES·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [11][12] Core Insights - The company achieved a steady revenue growth of 16.09% year-on-year in 2023, with total revenue reaching 5.264 billion yuan and a net profit of 193 million yuan, aligning with market expectations [4][9] - The digital economy business is progressing steadily, with significant growth in industry solutions revenue, which increased by 51.92% to 2.204 billion yuan [4][5] - The company is positioned as a core digital economy service provider in Shanghai, benefiting from the national strategy on digital economy and data elements [5][11] Financial Performance Summary - In 2023, the company reported total revenue of 5.264 billion yuan, a 16.09% increase from 2022, and a net profit of 193 million yuan, up 6.70% year-on-year [4][9] - The company’s cloud computing and big data revenue decreased by 1.19% to 2.543 billion yuan, while intelligent products revenue grew by 12.11% to 624 million yuan [4] - The projected revenue for 2024-2026 is expected to reach 6.023 billion yuan, 6.817 billion yuan, and 7.661 billion yuan respectively, with net profits forecasted at 227 million yuan, 265 million yuan, and 300 million yuan [11][6] Key Financial Metrics - The company’s gross margin for 2023 was 17.99%, reflecting a decrease of 1.75 percentage points, while the operating cash flow increased significantly by 116.26% to 462 million yuan [10] - The earnings per share (EPS) for 2023 was 0.14 yuan, with a projected EPS of 0.17 yuan for 2024 [6][11] - The price-to-earnings (P/E) ratio is projected to decrease from 95.6 in 2023 to 61.5 by 2026, indicating potential valuation improvement [6][12]