Topsec(SZ:002212) Guoyuan Securities·2024-04-24 09:00Investment Rating - The report maintains a "Buy" rating for Tianruixin (002212.SZ) [1][4]. Core Views - In 2023, the company achieved operating revenue of 3.1249 billion yuan, a year-on-year decrease of 11.81%, and a net loss attributable to shareholders of 371 million yuan [1]. - The company is focusing on enhancing quality and efficiency, with a gross margin increase of 0.47 percentage points and a significant reduction in total expenses by 2.57% [1]. - The application of AI technology in network security products and subscription services is a key growth area, with over 50% of subscription service content generated by AI [2]. - The company reported a substantial improvement in net cash flow from operating activities, reaching 517 million yuan, a year-on-year increase of 290.59% [1]. Financial Performance - The revenue from government and public institutions was 1.427 billion yuan, up 8.48% year-on-year, while revenue from state-owned enterprises decreased by 26.30% to 894 million yuan [1]. - The company forecasts operating revenues of 3.570 billion, 4.041 billion, and 4.532 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected at 285 million, 359 million, and 413 million yuan [4][20]. - The company's R&D expenses decreased by 6.35% as it enters a stable phase after completing new direction layouts [1]. Industry Position - The company is recognized as a leading provider in network security, big data, and cloud services, with significant growth potential in new directions and scenarios [4]. - The company benefited from recent policy implementations, with its Xinchuang business revenue growing by 33.01% year-on-year [3].