LZRJ(SH:688588) SINOLINK SECURITIES·2024-04-30 03:00Investment Rating - The report maintains a "Buy" rating for the company, with projected revenue growth and profit increases for the upcoming years [6][12]. Core Insights - The company reported a revenue of 700 million RMB in 2023, representing a year-on-year growth of 6.4%, while the net profit attributable to the parent company decreased by 26.8% to 81 million RMB [1]. - The company is expected to see significant revenue growth in the coming years, with projected revenues of 1.09 billion RMB, 1.18 billion RMB, and 1.28 billion RMB for 2024, 2025, and 2026, respectively, indicating growth rates of 57.1%, 8.0%, and 8.0% [6][8]. - The company has completed the acquisition of Zhiming Software Holdings, which is anticipated to contribute positively to revenue growth in 2024 [23][24]. Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 210 million RMB, a year-on-year increase of 11.4%, while the net profit for the same period was 49 million RMB, down 12.3% [23]. - The first quarter of 2024 saw a revenue of 270 million RMB, reflecting a substantial year-on-year growth of 60.4% [23]. Revenue and Profit Forecast - The forecast for 2024 to 2026 indicates a steady increase in revenue and net profit, with net profits expected to reach 110 million RMB, 160 million RMB, and 180 million RMB, corresponding to growth rates of 29.5%, 42.0%, and 15.8% respectively [6][8]. - The company's P/E ratios are projected to be 34.1, 24.0, and 20.8 for the years 2024, 2025, and 2026 [6]. Market Conditions - The company’s operations are significantly impacted by fluctuations in the Japanese yen, which affects both revenue and financial expenses due to the nature of its business transactions [5][24]. - The report highlights that the acquisition of key assets is expected to enhance revenue growth and improve profit margins through operational synergies [24].