Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Views - The company is expected to gradually release profit elasticity due to cost reduction and efficiency improvement strategies, standardization of the digital twin FT-E platform, and enhanced management of digital integrated services [3] - The company is focusing on digital twin and virtual digital human businesses, which are expected to become the second growth curve [6] - The company maintains high R&D investment, actively exploring AI+3D technologies, which helps in cost reduction and efficiency improvement [11] Financial Performance - In 2023, the company achieved a net profit attributable to the parent company of RMB 0.11 billion, a year-on-year decrease of 42% [3] - Revenue for 2023 was RMB 576 million, a year-on-year decrease of 5.5%, but is expected to grow to RMB 739 million in 2024, RMB 897 million in 2025, and RMB 1.035 billion in 2026 [5] - The company's ROE is expected to increase from 0.9% in 2023 to 5.3% in 2024, 6.4% in 2025, and 7.4% in 2026 [5] Business Segments - Digital integrated services accounted for 77% of total revenue in 2023, with revenue of RMB 444 million, remaining flat year-on-year [30] - 3D visualization products and services accounted for 18% of total revenue in 2023, with revenue of RMB 105 million, a year-on-year decrease of 22% [30] - The innovation business, including digital twin and information software, achieved revenue of RMB 27 million in 2023, a year-on-year increase of 133%, accounting for 5% of total revenue [83] Industry and Market Trends - The digital twin industry is included in the 14th Five-Year Plan, with the market size expected to reach RMB 484.5 billion by 2025, with a CAGR of 30.1% [135] - The virtual digital human market is expected to reach RMB 270.3 billion by 2030, with identity-type virtual digital humans expected to dominate the market [149] - The company is well-positioned in the digital twin industry, with its self-developed FT-E digital twin rendering engine, which has passed Huawei certification and is expected to benefit from policy support [170] Management and Strategy - The company has a clear equity structure, with the founder holding 27.30% of the shares directly and 3.61% through a wholly-owned company [51] - The company has implemented a restricted stock incentive plan to attract and retain talent, with performance targets set for 2024 and 2025 [91] - The company is focusing on cost control, shortening delivery cycles, and ensuring the settlement of large projects to improve project profitability [3] Future Outlook - The company is expected to achieve revenue of RMB 7.39 billion in 2024, RMB 8.97 billion in 2025, and RMB 10.35 billion in 2026, with net profit attributable to the parent company of RMB 60 million, RMB 75 million, and RMB 93 million, respectively [39] - The company's EPS is expected to be RMB 0.57 in 2024, RMB 0.72 in 2025, and RMB 0.89 in 2026, with corresponding P/E ratios of 34.3x, 27.3x, and 22.1x [39]
凡拓数创首次覆盖：深耕数字创意行业，AI+3D打开成长空间