Unionman Technology (SH:688609)2024-05-13 01:00Investment Rating - The report initiates coverage with an "Outperform" rating for the company, setting a target price of 15.99 CNY based on a PE of 55X for 2024 [21]. Core Insights - The company reported a revenue of 2.171 billion CNY in 2023, a decrease of 9.65% year-on-year, with a net loss attributable to shareholders of 199 million CNY [35][36]. - In Q1 2024, the company achieved a revenue of 662 million CNY, reflecting a year-on-year increase of 22.51%, and a net profit of 4.52 million CNY [35]. - The company has diversified its revenue streams, with over 10% of its income now coming from the Hongmeng ecosystem, which includes applications in smart metering, smart homes, and smart cities [36]. Financial Forecast - Revenue projections for 2024, 2025, and 2026 are 3.420 billion CNY, 4.535 billion CNY, and 5.871 billion CNY respectively, with corresponding net profits of 145 million CNY, 267 million CNY, and 426 million CNY [21][22]. - The report anticipates a significant recovery in net profit growth, projecting a 173% increase in 2025 and a 59.4% increase in 2026 [22][30]. Business Segmentation - The smart terminal segment is expected to generate 2.345 billion CNY in 2024, while the communication module and industry application solutions segment is projected to reach 873.67 million CNY, reflecting substantial growth [24]. - The operational services segment is forecasted to grow by 50% in 2024, reaching 132.47 million CNY [24]. Shareholder Information - The top shareholders include Zhan Qijun with 12.27%, Lin Rong with 8.23%, and Hu Jiahui with 5.24% of the total share capital [28].