Apex(SH:603383) GF SECURITIES·2024-04-13 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 47.07 CNY per share based on a 30x PE for 2024 [4][68]. Core Insights - The company's performance met expectations, with revenue of 740 million CNY, a year-on-year increase of 19.1%, and a net profit of 233 million CNY, reflecting a growth of 40.49% [2][37]. - The gross margin improved to 69.16%, up 1.7 percentage points from 2022, with the customized software business gross margin rising to 61.87% [2][23]. - The company has established itself as a leader in the new trading system for securities firms, with significant upgrades and new client acquisitions [2][39]. Financial Performance - For 2023, the company reported: - Revenue: 740 million CNY, up 19.1% from 625 million CNY in 2022 [17]. - Net Profit: 233 million CNY, a 40.5% increase from 166 million CNY in 2022 [17]. - Non-recurring Net Profit: 217 million CNY, up 38.94% from 156 million CNY in 2022 [17]. - Gross Margin: 69.16%, up from 67.46% in 2022 [23]. - Net Margin: 31.58%, an increase of 5.28 percentage points from 2022 [23]. Business Development - The company is expanding its "Wealth+" business into banking, trust, futures, and funds, enhancing its market position [3][40]. - The "Operation+" sector has seen the core account system fully implemented at Dongwu Securities, with plans for a management system in the Hong Kong market [3][42]. - The "Institution+" area achieved the highest industry bid rate for institutional wealth management in 2023 [3][42]. Earnings Forecast - Projected EPS for 2024, 2025, and 2026 are 1.57 CNY, 1.96 CNY, and 2.60 CNY respectively, with expected revenue growth rates of 10.1%, 14.8%, and 19.6% [44][67]. - The company anticipates continued growth in its core trading systems, with revenue growth rates for the productized software business expected to be 11%, 15%, and 20% from 2024 to 2026 [44][53]. Valuation - The report suggests a reasonable value of 47.07 CNY per share based on comparable company valuations and historical valuations [68].