Yusys Technologies(300674) 中泰证券·2024-05-27 03:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the benchmark index in the next 6 to 12 months [7][10]. Core Insights - The company's gross margin has improved, with a year-on-year increase of 4.41% to 26.41% in Q1 2024, driven by refined project management and enhanced product standardization [3][6]. - Revenue for Q1 2024 was 601 million yuan, a decline of 24.25% year-on-year, primarily due to a 50% decrease in system integration sales and services [6][24]. - The net profit attributable to the parent company for Q1 2024 was 32 million yuan, down 23.29% year-on-year, while the non-recurring net profit was 31 million yuan, a decrease of 15.21% [6][24]. - The company has established partnerships with over 1,000 financial institutions, providing a solid customer base for stable growth [6]. Financial Forecast - Revenue projections for 2024, 2025, and 2026 are 5.725 billion yuan, 6.329 billion yuan, and 7.027 billion yuan, respectively, with corresponding net profits of 361 million yuan, 407 million yuan, and 469 million yuan [7][13]. - The report anticipates a year-on-year revenue growth rate of 10% for 2024 and 11% for 2025 and 2026 [13]. - The price-to-earnings (P/E) ratios are projected to be 23, 20, and 18 for the years 2024, 2025, and 2026, respectively [7][13]. Strategic Initiatives - The company is actively expanding its overseas market presence, including a $10 million investment in the Lion X Digital Innovation Investment Fund, targeting fintech and digital innovation opportunities in Southeast Asia [14]. - A collaborative solution with Transwarp ArgoDB aims to enhance data collection and reporting efficiency for financial institutions [14].