ROYALFLUSH INFO(SZ:300033) Huachuang Securities·2024-05-01 06:02Investment Rating - The report assigns a "Recommended" rating to the company, reflecting an expectation to outperform the benchmark index by 10% to 20% over the next six months [1][13]. Core Insights - The company's revenue for 2023 was 3.564 billion yuan, a slight increase of 0.14% year-on-year, while the net profit attributable to shareholders decreased by 17.07% to 1.402 billion yuan [1]. - The first quarter of 2024 saw a revenue of 619 million yuan, representing a year-on-year growth of 1.47%, but the net profit dropped by 15.03% to 104 million yuan [1]. - The company is focusing on enhancing its software products through artificial intelligence, leading to a significant growth of 53.53% in software sales and maintenance in 2023 [1]. - The self-developed HithinkGPT large model is expected to be a new growth engine, with a pre-training financial corpus reaching trillions of tokens [1]. Financial Performance Summary - Revenue Forecast: Expected revenues for 2024, 2025, and 2026 are projected at 4.093 billion, 4.716 billion, and 5.253 billion yuan, respectively, with growth rates of 14.8%, 15.2%, and 11.4% [2]. - Net Profit Forecast: Projected net profits for the same years are 1.662 billion, 1.935 billion, and 2.174 billion yuan, with growth rates of 18.5%, 16.4%, and 12.3% [2]. - Earnings Per Share (EPS): Expected EPS for 2024, 2025, and 2026 are 3.09, 3.60, and 4.04 yuan, respectively [2]. - Price-to-Earnings Ratio (PE): The corresponding PE ratios are projected to be 39, 34, and 30 times [2]. Research and Development - The company maintains a high R&D expense ratio of 33.09% in 2023 and 48.80% in the first quarter of 2024, focusing on key technologies such as machine learning and natural language processing [1]. - The integration of AI technologies into existing products and services aims to enhance product competitiveness and service quality [1].