Jiuyuan Yinhai(SZ:002777) Guoyuan Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% in the next six months compared to the Shanghai Composite Index [6][8]. Core Views - The company achieved steady revenue growth with a total revenue of 1.347 billion yuan in 2023, representing a year-on-year increase of 5.01%. However, the net profit attributable to shareholders decreased by 8.83% to 168 million yuan [3][6]. - The company is focusing on three strategic areas: medical insurance, digital governance, and smart city initiatives, which are expected to drive future growth [6][4]. - The company has significantly improved its cash flow from operating activities, which reached 188 million yuan, a year-on-year increase of 401.38% [3]. Revenue and Profit Analysis - In 2023, the medical insurance business generated 707 million yuan in revenue, up 15.07%, while the digital governance business saw a decline of 7.48% to 550 million yuan. The smart city business experienced substantial growth, with revenue increasing by 62.81% to 68 million yuan [3][4]. - The company's R&D investment reached 276 million yuan, accounting for 20.51% of its revenue, reflecting a year-on-year increase of 12.29% [5]. Financial Forecast - The forecast for 2024-2026 projects revenues of 1.547 billion yuan, 1.746 billion yuan, and 1.945 billion yuan, respectively. The net profit attributable to shareholders is expected to be 198 million yuan, 231 million yuan, and 265 million yuan for the same period [6][12]. - The earnings per share (EPS) are projected to be 0.49 yuan, 0.57 yuan, and 0.65 yuan, with corresponding price-to-earnings (P/E) ratios of 41.67, 35.65, and 31.09 [6][12]. Market Position and Strategy - The company is actively exploring innovative applications of medical insurance data and expanding its smart city business, having undertaken multiple projects in various regions [4][5]. - The company aims to leverage the AIGC wave by developing large models for the public welfare sector and integrating AI into healthcare, digital governance, and smart city initiatives [5].