Sangfor Technologies (SZ:300454)2024-04-28 16:00Investment Rating - The report assigns a "Cautious Recommendation" rating to the company, indicating a downward adjustment in its investment outlook [1]. Core Insights - The company reported a revenue of 1.035 billion yuan in Q1 2024, representing a year-on-year decrease of 14.66%. The net profit attributable to shareholders was a loss of 489 million yuan, which is an increase in loss by 18.64%. The non-recurring net profit also showed a loss of 510 million yuan, with a 19.65% increase in loss [1][2]. - The company's "AI First" strategy has been strengthened, enhancing product competitiveness. New product releases include the upgraded Security GPT 3.0, a self-developed AI computing platform, and new versions of EDS storage and container engine SKE. These innovations aim to provide users with simpler and safer digital solutions, showcasing the company's commitment to AI and cloud innovation [2]. - The company is expected to achieve revenues of 8.184 billion yuan, 9.083 billion yuan, and 10.362 billion yuan for the years 2024, 2025, and 2026, respectively. The projected EPS for the same years is 0.58 yuan, 0.75 yuan, and 1.02 yuan, with corresponding P/E ratios of 95.11X, 73.69X, and 53.91X [2][4]. Financial Performance Summary - In Q1 2024, the company experienced a gross margin of 58.18%, a decrease of 3.93 percentage points compared to the same period last year. Sales expenses were 636 million yuan, down 4.84% year-on-year, while management expenses were 90 million yuan, down 2.74%. R&D expenses totaled 532 million yuan, a decrease of 8.17% [1]. - The financial forecast indicates a revenue growth rate of 6.81% in 2024, 10.99% in 2025, and 14.08% in 2026. The net profit growth rate is projected to be 22.93% in 2024, 29.06% in 2025, and 36.70% in 2026 [4][5].