Newtouch(SH:688590)2024-05-03 09:02Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company reported a revenue of 1.683 billion yuan for 2023, representing a year-over-year increase of 27.92%, and a net profit of 68.62 million yuan, marking a turnaround from losses [4][5]. - In Q1 2024, the company achieved a revenue of 433 million yuan, up 36.76% year-over-year, with a net profit of 15.12 million yuan, reflecting a 107.78% increase [4][6]. - The company has seen significant growth in AI-related revenue, with approximately 70 million yuan generated from AI large model applications in 2023, and a backlog of software business orders amounting to 1.417 billion yuan, a nearly 30% increase from the previous year [5][6]. Summary by Sections Financial Performance - The company’s total revenue for 2023 was 1.683 billion yuan, with a gross profit margin of 26.3% [7]. - The projected revenues for 2024, 2025, and 2026 are 2.168 billion yuan, 2.905 billion yuan, and 3.901 billion yuan, respectively, with corresponding net profits expected to be 198 million yuan, 283 million yuan, and 382 million yuan [6][7]. AI and Market Position - The company has successfully integrated AI modules into multiple products, leading to a robust increase in orders related to AI large models, totaling 130 million yuan [5][6]. - The demand in the insurance sector remains strong, with revenue from this segment reaching 570 million yuan in 2023, a 34% increase year-over-year, driven by core incremental needs such as AIGC platform construction and IFRS17 system development [5][6]. Operational Efficiency - The company reported a significant improvement in operational quality, with operating cash flow reaching 85.94 million yuan in 2023, a recovery from a negative cash flow of 128 million yuan in 2022 [11].