Yusys Technologies(SZ:300674) Guotai Junan Securities·2024-05-03 03:32Investment Rating - The investment rating for the company is "Accumulate" with a target price of 19.26 CNY, maintaining the previous rating of "Accumulate" [1][16]. Core Insights - The company's performance met expectations, with a focus on profitability rather than revenue growth. The decline in revenue was anticipated due to the integration business, but the overall performance remained within expected ranges [1][16]. - The report emphasizes the importance of profit quality over apparent revenue, suggesting that future attention should be directed towards profitability improvements rather than just revenue figures [1][16]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 601 million CNY, a year-on-year decline of 23.29% [1]. - The net profit attributable to shareholders was 321.29 million CNY, reflecting a significant recovery in profitability, with a year-on-year increase of 26.89% when excluding non-recurring gains and stock incentives [1][16]. - The gross margin improved significantly, attributed to a shift in revenue structure and a recovery in software development margins [1][16]. Earnings Forecast - The earnings per share (EPS) forecast for 2024 is 0.53 CNY, with projections of 0.70 CNY and 0.81 CNY for 2025 and 2026, respectively [1][16]. - The company is expected to maintain its profit growth rate, outpacing revenue growth due to internal cost reduction and efficiency improvements [1][16]. Market Position - The company is positioned as a leader in the banking solutions market, providing a range of services including consulting, software products, and system integration [1][16]. - The report highlights the company's strong brand influence and product variety, which contribute to its competitive edge in the industry [1][16].