Linewell(SH:603636) Haitong Securities·2024-05-17 08:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company is experiencing steady growth in new contracts and is rapidly advancing its artificial intelligence and data services strategy [3] - The company has adjusted its strategic positioning to focus on artificial intelligence and data services, establishing itself as a leading enterprise in these fields [8] - Despite a slight decline in revenue and profit due to increased expenses from strategic investments, the long-term outlook remains positive with improved sales structure and gross margins [8][10] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 1.677 billion yuan, a year-on-year decrease of 3.58%, and a net profit of 56.29 million yuan, down 59.18% year-on-year [23] - The company signed new contracts worth 2.537 billion yuan in 2023, representing a year-on-year growth of 4.92% [23] - The company’s gross margin improved, indicating enhanced competitiveness in the national market [23] Strategic Developments - The establishment of an artificial intelligence research center and significant investments in R&D have positioned the company to lead in government and public safety sectors [8][10] - The company has launched 41 specialized products in 2023, demonstrating initial success in integrating AI with industry applications [10] Future Outlook - Revenue projections for 2024-2026 are estimated at 1.928 billion yuan, 2.260 billion yuan, and 2.693 billion yuan respectively, with net profits expected to recover significantly [26] - The company is expected to benefit from ongoing strategic investments in AI and data services, which are anticipated to drive future growth [26]