TRS(SZ:300229) KAIYUAN SECURITIES·2024-04-11 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected performance that will outperform the market by over 20% [14]. Core Views - The company has a strong foothold in the natural language processing sector and is recognized for its technological capabilities, particularly in data security [14]. - The company has launched the "Tuotian" large model and is rapidly implementing it across various industry scenarios, with over 20 contracts signed in the financial sector alone, amounting to approximately 50 million [27]. - Despite a decrease in revenue and net profit in 2023, the company is expected to recover with significant growth projected for 2024 and beyond, particularly in net profit and earnings per share (EPS) [15][14]. Financial Summary - Revenue for 2022 was 907 million, which decreased to 782 million in 2023, with a projected increase to 861 million in 2024 and 1,026 million in 2025 [2]. - Net profit dropped from 128 million in 2022 to 36 million in 2023, but is expected to rebound to 235 million in 2024 and continue growing to 440 million by 2026 [2]. - The gross margin improved from 63.7% in 2022 to 68.4% in 2023, with further increases anticipated [2]. - The company’s EPS is projected to rise from 0.05 in 2023 to 0.30 in 2024, 0.43 in 2025, and 0.55 in 2026 [2]. - The price-to-earnings (P/E) ratio is expected to decrease from 321.9 in 2023 to 50.0 in 2024, indicating a more favorable valuation as earnings improve [2]. Order Backlog - As of the end of 2023, the company had an order backlog of 543 million, which represents an increase compared to the previous year, providing a solid foundation for future revenue growth [15][26].