Hundsun(SH:600570) GF SECURITIES·2024-05-03 07:32Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - In Q1 2024, the company reported a revenue of 1.19 billion yuan, a year-on-year increase of 5.1%, but a net loss attributable to shareholders of 36.14 million yuan, a significant decline of 116.3% compared to a profit of 220 million yuan in Q1 2023. This shift from profit to loss is primarily due to a decrease in investment income and fair value changes [2][9] - Cost control measures have shown significant effectiveness, with sales expenses increasing by 8.6% year-on-year to 130 million yuan, and management expenses rising by 8.8% to 160 million yuan. Research and development expenses grew by 3.7% to 560 million yuan, with a research expense ratio of 47.2%, down 0.6 percentage points from Q1 2023 [2][9] - The UF3.0 product continues to be implemented, with notable advancements in AI large models. The system has been adapted for various trading scenarios and has successfully launched financing and securities lending services [2][9] - The earnings forecast for 2024-2026 estimates EPS at 0.92, 1.07, and 1.20 yuan per share, respectively, with a projected reasonable value of 27.62 yuan per share based on a 30x PE ratio for 2024 [2][9] Summary by Sections Financial Performance - The company reported a revenue of 11.9 billion yuan in Q1 2024, with a year-on-year growth of 5.1%. The net profit attributable to shareholders was a loss of 361.4 million yuan, a decline of 116.3% year-on-year. The non-recurring net profit was 21.47 million yuan, down 71.3% from the previous year [2][3][8] - The projected revenue for 2024-2026 is 77.68 billion yuan, 84.54 billion yuan, and 93.46 billion yuan, with growth rates of 6.7%, 8.8%, and 10.6%, respectively. The net profit attributable to shareholders is expected to be 17.44 billion yuan, 20.24 billion yuan, and 22.73 billion yuan, with growth rates of 22.4%, 16.1%, and 12.3% [3][9] Cost Management - Sales expenses increased to 130 million yuan, with a growth rate of 8.6%, while management expenses rose to 160 million yuan, also up 8.8%. Research and development expenses were 560 million yuan, reflecting a growth of 3.7% [2][9] Product Development - The UF3.0 product has been successfully implemented in various financial institutions, and the company is making steady progress in AI model development [2][9]