TRS(SZ:300229) AVIC Securities·2024-04-26 10:00Investment Rating - The investment rating for the company is "Buy" [2][11]. Core Views - The company, Torus (300229), is positioned as a leader in AI and vertical applications, leveraging its "TuoTian Big Model" to enhance digital transformation across various industries [2][19]. - The company has faced challenges in 2023, with a revenue decline of 13.84% year-on-year, primarily due to reduced client investments and increased operational costs [3][19]. - The company has a strong foundation in high-quality data resources, which supports its AI model training and application in sectors such as finance, media, and public safety [8][19]. Financial Performance - In Q4, the company achieved revenues of 2.11, 2.34, 1.57, and 1.80 billion yuan, with year-on-year changes of +10.62%, -0.31%, -25.94%, and -33.32% respectively [2]. - The overall gross margin for 2023 was 68.37%, with a net profit margin of 4.27%, reflecting a decrease of 9.34 percentage points year-on-year [14][19]. - The company’s net profit for 2023 was 0.36 billion yuan, down 71.45% year-on-year, with a significant drop in non-recurring net profit [3][19]. Business Segments - The company operates in five main segments: digital government, media integration, financial technology, digital enterprises, and public safety, with a focus on AI and big data solutions [2][19]. - The financial services segment reported a revenue of 3.13 billion yuan, down 9.79% year-on-year, while the public safety segment saw a revenue decline of 12.85% [2][19]. Future Outlook - The company is expected to gradually recover and rebound, with projected net profits of 2.36, 3.45, and 4.24 billion yuan for 2024 to 2026, respectively [19]. - The company aims to capitalize on the growth of the AI industry and expand its market share through innovative data solutions and applications [19].