EmbedWay(603496) 光大证券·2024-05-05 10:07Investment Rating - The report maintains a "Buy" rating for Hengwei Technology (603496 SH) [2][25] Core Views - AI development brings new business opportunities for the company, particularly in network visualization and AI-related services [24] - The company's smart system platform business is expected to grow due to increased demand for informatization infrastructure [8] - Network visualization business is projected to grow steadily in 2024, with improved revenue structure and higher gross margins [17] Financial Projections - Revenue for 2024E is projected at 1,101 52 million yuan, a 42 79% increase from 2023 [9] - Net profit attributable to the parent company for 2024E is forecasted at 169 49 million yuan, a 115 13% increase from 2023 [9] - EPS for 2024E is expected to be 0 53 yuan, up from 0 25 yuan in 2023 [9] Business Performance - In 2023, the company achieved revenue of 771 million yuan, a slight increase of 0 12% year-over-year [23] - Q1 2024 revenue was 259 million yuan, a 56 99% increase year-over-year, with net profit attributable to the parent company reaching 40 million yuan, up 130 43% [23] - The smart system platform business generated revenue of 392 million yuan in 2023, a 13 39% increase year-over-year [8] Market and Industry Analysis - The company's network visualization business revenue in 2023 was 376 million yuan, a 9 1% decrease year-over-year, but with improved gross margins from 56 03% in 2022 to 63 79% in 2023 [17] - The company is expected to benefit from the ongoing push for domestic informatization and the development of the AI industry [8][24] Valuation Metrics - The company's PE ratio for 2024E is 55X, with a PB ratio of 6 2X [9] - ROE (diluted) for 2024E is projected at 11 26%, up from 5 82% in 2023 [9]