Blue Focus(300058) Great Wall Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index in the next six months [21][27]. Core Viewpoints - The company is expected to achieve a significant revenue growth, surpassing 52 billion RMB in 2023, marking a historical high, primarily driven by the rapid growth of its overseas business [21][20]. - The implementation of the "AI First" strategy is anticipated to enhance operational efficiency, with AI-driven business improvements ranging from 30% to 1000% [3][8]. - The company forecasts a turnaround in profitability, with a projected net profit of 1.0 to 1.5 billion RMB for 2023, indicating a return to profitability compared to previous years [7][21]. Financial Performance Summary - Revenue is projected to grow from 52.3 billion RMB in 2023 to 62.1 billion RMB by 2025, with a year-on-year growth rate of 42.6% in 2023 [20][21]. - The net profit is expected to increase from 1.1 billion RMB in 2023 to 6.4 billion RMB by 2025, reflecting a significant recovery from previous losses [21][20]. - The report indicates a projected EPS of 0.04 RMB in 2023, improving to 0.26 RMB by 2025 [21][20]. Business Strategy and Outlook - The company is evolving its AI capabilities with the introduction of the Blue AI model, which will continue to develop into an AI Agent to cater to diverse business scenarios [8][3]. - The focus on AI is expected to enhance the quality of content and revolutionize the advertising and marketing industry, thereby increasing service value [8][3]. - The report highlights that the overseas e-commerce advertising clients are expected to contribute significantly to revenue growth, despite lower profit margins from these operations [21][20].