Streamax(SZ:002970)2024-06-04 10:00Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 43.81 based on a 2024 PE of 45x [8][16]. Core Insights - The company has achieved a strong recovery in performance, with a significant increase in gross profit margin (GPM) from 39% in 2022 to 43% in 2023. Revenue for 2023 reached RMB 1.70 billion, a 22.80% year-on-year increase, while net profit attributable to shareholders was RMB 102 million, up 169.54% [2][14]. - The company is expanding its overseas market presence, with a revenue growth rate of 26.87% from international operations, compared to 18.67% growth in mainland China. The establishment of eight subsidiaries and offices in over 100 countries has contributed to this growth [5][20]. - The company has streamlined its three-tier R&D structure, leading to improved efficiency. R&D spending in 2023 was RMB 246 million, accounting for 14.50% of revenue, down from RMB 282 million in 2022 [3][19]. Summary by Sections Financial Performance - In 2023, the company reported revenue of RMB 1.70 billion, a 22.80% increase year-on-year, and a net profit of RMB 102 million, reflecting a 169.54% growth. For Q1 2024, revenue was RMB 502 million, up 37.19% year-on-year, with net profit at RMB 53 million, a 120.74% increase [2][14]. - The projected revenue for 2024-2026 is RMB 2.14 billion, RMB 2.71 billion, and RMB 3.39 billion, respectively, with net profits expected to be RMB 168 million, RMB 232 million, and RMB 311 million [8][16]. R&D and Innovation - The company has invested in a three-tier R&D structure, enhancing efficiency with a reuse rate of over 80% for foundational technology platforms. The focus remains on artificial intelligence, with leading algorithms in various industries [3][19]. - The company has initiated exploration into large models since late 2022, applying them in automated annotation and sample generation [3][19]. Market Expansion - The launch of a European safety management solution aligns with EU regulations, facilitating vehicle certification processes. The company has developed a comprehensive suite of solutions compliant with EU standards [4][15]. - The company continues to expand its international marketing network, with over 30% of local staff in overseas operations, contributing to a robust international presence [5][20].