VENUSTECH(SZ:002439) Xinda Securities·2024-04-14 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock is expected to outperform the benchmark by more than 15% within the next six months [8]. Core Views - The company achieved a revenue of 4.507 billion yuan in 2023, a year-on-year increase of 1.58%, and a net profit attributable to shareholders of 741 million yuan, up 18.37% year-on-year [1][3]. - The company is experiencing a significant improvement in cash flow management, with a 60% increase in collections year-on-year in Q1 2024, which is expected to support continued revenue growth [2]. - The new business segments, particularly in cloud security and data security, are showing strong growth, contributing 21.42 billion yuan in revenue, a 13.82% increase year-on-year, and accounting for 47.54% of total revenue [1][2]. Financial Performance Summary - In 2023, the company reported a total revenue of 4.507 billion yuan, with a net profit of 741 million yuan, reflecting an 18.4% growth compared to 2022 [3]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.77 yuan, 0.94 yuan, and 1.19 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 24.84, 20.25, and 16.11 [2][3]. - The gross profit margin for 2023 was 57.8%, with a return on equity (ROE) of 6.2% [3]. Business Segment Analysis - The company's security products generated 2.578 billion yuan in revenue, a decrease of 12.81% year-on-year, while security operations and services saw a 30.63% increase to 1.899 billion yuan [1]. - The new business segment, including cloud security and industrial internet security, is rapidly growing, with cloud security revenue reaching 572 million yuan, a 34.5% increase year-on-year [1][2]. Strategic Developments - The company has successfully implemented cost reduction and efficiency improvement measures, resulting in a decrease in sales, management, and R&D expenses by 11.69% overall [1]. - As of January 5, 2024, China Mobile officially became the controlling shareholder of the company, enhancing collaboration opportunities [1].