HDCM(SZ:000567) Soochow Securities·2024-04-25 23:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6][17]. Core Insights - The company has shown strong growth in its financial performance, with a 15.69% increase in revenue for 2023 and a projected 23.03% growth in net profit for 2024 [17]. - The company is focusing on the personal loan non-performing asset (NPA) market, leveraging big data and AI technology to enhance its asset management capabilities [5]. - The company has established partnerships with various institutions to deepen its presence in the personal loan NPA sector, acquiring a total of 29 projects with a principal amount of approximately 10.6 billion yuan [5]. Financial Performance Summary - For 2023, the company reported total revenue of 1.23 billion yuan and a net profit of 880 million yuan, reflecting a year-on-year growth of 15.69% and 25.68% respectively [17]. - The projected net profit for 2024 is 1.08 billion yuan, with an expected growth rate of 23.03% [6]. - The company's earnings per share (EPS) for 2024 is adjusted to 0.80 yuan, with further increases expected in subsequent years [6]. Business Strategy and Developments - The company is enhancing its personal loan NPA business, which has seen a 72% year-on-year increase in financial technology service revenue, primarily driven by personal loan NPAs [5]. - The company’s institutional distressed asset management business remains stable, contributing significantly to overall revenue, with a reported income of 1.11 billion yuan from asset disposals in 2023 [13]. - The company has a strong commitment to shareholder returns, having implemented consistent cash dividends over the past two years, with a proposed cash dividend of 573 million yuan for 2023 [18].