Dark Horse Technology (SZ:300688) Soochow Securities·2024-05-23 09:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [30][101]. Core Insights - The company has shown signs of recovery, with a narrowing loss in net profit and a steady growth in training and enterprise service businesses, driven by further AI integration [29][64]. - The company has accumulated over 150,000 small and medium-sized enterprise (SME) clients and has established partnerships with various institutions, indicating a strong market presence [25][36]. - The AI-driven services are expected to significantly enhance the company's growth potential, particularly in the enterprise service market, which is projected to expand due to the increasing demand for AI applications [46][90]. Summary by Sections Financial Performance - In Q1 2024, the company achieved revenue of 0.5 billion yuan, a year-on-year increase of 3.7%, with a signed order value of 2.3 billion yuan, reflecting a growth of over 10% [1][30]. - The company reported a net profit of -9.198 million yuan, showing a 15% improvement year-on-year, indicating a trend towards profitability [1][64]. Business Segmentation - The traditional business segments have shown stable revenue and profit growth, while the AIGC (AI Generated Content) business presents significant growth opportunities [3][30]. - The company is actively reducing low-margin projects, which is expected to lead to a turning point in performance, with a projected net profit of 0.6 billion yuan in 2024 [30][101]. Market Potential - The enterprise service market is vast, with a significant number of SMEs in China, and the AI integration is anticipated to create new opportunities for service expansion [46][78]. - The training market is projected to reach 900 billion yuan in 2023, with AI training expected to grow substantially, indicating a large potential market for the company [46][90]. Future Projections - The company forecasts total revenue to reach 4.25 billion yuan by 2024, with a compound annual growth rate (CAGR) of 10% for training services and 23% for enterprise services from 2024 to 2026 [93][94]. - The AIGC services are expected to generate revenues of 1.1 billion yuan in 2024, growing to 2.8 billion yuan by 2026, highlighting the anticipated impact of AI on the company's growth trajectory [90][101].