XGD(SZ:300130) Minsheng Securities·2024-04-25 06:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [7]. Core Insights - The company reported a revenue of 3.801 billion yuan in 2023, a decrease of 11.94% year-on-year, but achieved a net profit attributable to shareholders of 755 million yuan, a significant increase of 1588.4% [7]. - The first quarter of 2024 saw a revenue of 783 million yuan, down 22.74% year-on-year, but net profit increased by 66.4% [7]. - The company has improved its profitability, with a gross margin of 38.80% in 2023, up 13.53 percentage points year-on-year, and a net profit margin of 19.84%, up 18.81 percentage points [7]. - The renewal of payment licenses has mitigated risks, and a rebound in transaction volumes is expected in 2024 [7]. - The company is expanding its cross-border payment services and developing AI-enabled products to drive future growth [7]. Financial Forecasts - Revenue is projected to grow from 3.801 billion yuan in 2023 to 4.233 billion yuan in 2024, representing an 11.4% increase [2]. - Net profit is expected to rise from 755 million yuan in 2023 to 908 million yuan in 2024, a growth rate of 20.2% [2]. - Earnings per share (EPS) is forecasted to increase from 1.36 yuan in 2023 to 1.63 yuan in 2024 [2]. - The price-to-earnings (PE) ratio is projected to decrease from 16 in 2023 to 13 in 2024, indicating a potentially more attractive valuation [2]. Business Performance - The company's cash flow from operations improved significantly, reaching 1.133 billion yuan in 2023, a 347.56% increase year-on-year [7]. - The company has successfully established a payment service product system for cross-border and overseas markets, achieving its first local transaction in 2023 [7]. - The AI product development is underway, with a focus on creating solutions that enhance operational efficiency for businesses [7].