ROYALFLUSH INFO(SZ:300033) Huachuang Securities·2024-05-01 03:07Investment Rating - The report adjusts the investment rating to "Recommended" based on the expected performance of the company in the upcoming years [5]. Core Views - The company's revenue for 2023 was 3.564 billion yuan, showing a slight year-on-year increase of 0.14%, while the net profit attributable to shareholders decreased by 17.07% to 1.402 billion yuan [1][2]. - The company is focusing on enhancing its software sales and maintenance, which grew by 53.53% in 2023 due to advancements in artificial intelligence technology and participation in financial innovation projects [2]. - The self-developed HithinkGPT large model is expected to be a new growth engine, with a pre-training financial corpus reaching trillions of tokens, showcasing strong performance in financial scenarios [2][3]. Financial Performance Summary - 2023 Financials: - Total revenue: 3.564 billion yuan - Net profit: 1.402 billion yuan - Non-recurring net profit: 1.369 billion yuan - 2024 Q1 Financials: - Revenue: 619 million yuan, a year-on-year increase of 1.47% - Net profit: 104 million yuan, a year-on-year decrease of 15.03% [1][2]. Future Projections - Expected revenues for 2024, 2025, and 2026 are projected to be 4.093 billion yuan, 4.716 billion yuan, and 5.253 billion yuan respectively, with corresponding net profits of 1.662 billion yuan, 1.935 billion yuan, and 2.174 billion yuan [3][8]. - The report anticipates an EPS of 3.09 yuan for 2024, 3.60 yuan for 2025, and 4.04 yuan for 2026, with price-to-earnings ratios of 39, 34, and 30 respectively [3][8].