Hundsun(SH:600570) ZHONGTAI SECURITIES·2024-06-05 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a revenue growth of 5.13% year-on-year in Q1 2024, with total revenue reaching 1.188 billion yuan. However, the net profit attributable to shareholders decreased by 116.28% to -36 million yuan, primarily due to a decline in investment income and fair value changes [4][5] - The company's LightGPT algorithm has been approved for registration, marking a significant advancement in the application of generative AI in the financial sector [4] Financial Performance Summary - Revenue Forecast: The company is projected to achieve revenues of 7.822 billion yuan in 2024, 8.546 billion yuan in 2025, and 9.557 billion yuan in 2026, with corresponding growth rates of 7%, 9%, and 12% respectively [1][5] - Net Profit Forecast: The net profit attributable to shareholders is expected to be 1.581 billion yuan in 2024, 1.774 billion yuan in 2025, and 2.011 billion yuan in 2026, with growth rates of 11%, 12%, and 13% respectively [1][5] - Earnings Per Share (EPS): The EPS is projected to increase from 0.75 yuan in 2024 to 1.06 yuan in 2026 [1][5] - Valuation Metrics: The price-to-earnings (P/E) ratio is expected to decrease from 24 times in 2024 to 19 times in 2026 [5] Business Segment Performance - The company reported varied performance across its business segments in Q1 2024, with wealth technology services declining by 20.34%, while asset management technology services grew by 13.64% [4] - The gross margin remained stable at 68.8%, with a slowdown in the growth of sales, management, and R&D expenses [4] Market Capitalization - The company's market capitalization is approximately 37.561 billion yuan, with a share price of 19.83 yuan [2]