TANSUN(SZ:300872) ZHONGTAI SECURITIES·2024-05-26 06:00Investment Rating - The report maintains a "Buy" rating for Tianyang Technology (300872.SZ) with a market price of 12.85 CNY [3][11]. Core Insights - The company has experienced a slight decline in revenue but significant growth in net profit, indicating a focus on high-quality development and strategic customer engagement [8][10]. - The company is actively expanding its capabilities in AI and computing power solutions, collaborating with various institutions to enhance its service offerings [10][11]. Financial Performance Summary - Revenue Forecast: The company is projected to achieve revenues of 21.33 billion CNY in 2024, 23.76 billion CNY in 2025, and 26.72 billion CNY in 2026, reflecting a growth rate of approximately 10% to 12% annually [3][11]. - Net Profit Forecast: Expected net profits are 1.41 billion CNY for 2024, 1.73 billion CNY for 2025, and 2.15 billion CNY for 2026, with growth rates of 21% to 24% [3][11]. - Earnings Per Share (EPS): Projected EPS is 0.29 CNY for 2024, increasing to 0.53 CNY by 2026 [3][11]. - Cash Flow: The company reported a significant improvement in operating cash flow, with a net cash flow of 4.06 billion CNY in 2023 [10]. Business Development Summary - Revenue Trends: In 2023, the company reported revenues of 19.36 billion CNY, a decrease of 2.01% year-over-year, attributed to strategic adjustments and longer project settlement cycles [9][10]. - Profit Growth: The net profit for 2023 was 1.17 billion CNY, a substantial increase of 91.94% year-over-year, driven by improved project delivery quality and effective receivables management [10]. - Market Expansion: The company has secured significant contracts in the credit card sector and expanded its client base in credit management, indicating a successful penetration into new markets [9][10].