Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.21 CNY per share [6]. Core Insights - The company reported a revenue of 2.82 billion CNY for 2024, a decrease of 9.73% year-on-year, but achieved a net profit of 83 million CNY, marking a turnaround from losses [1]. - The cloud computing segment is emerging as a second growth curve, with revenue from this business increasing by 10.09% year-on-year to 256 million CNY, while the network security business saw a decline of 11.49% to 2.55 billion CNY [1]. - The company has implemented cost control and quality improvement measures, resulting in a gross margin increase of 0.85 percentage points to 61.04% in 2024 [2]. - The company is focusing on AI integration in its products, enhancing its capabilities in AI security and cloud security, and has signed a memorandum of understanding with Huawei to further its development in this area [3]. Revenue and Profit Forecast - The forecast for net profit has been adjusted downwards for 2025 and 2026 to 179 million CNY and 248 million CNY, respectively, reflecting a reduction of 50.0% and 39.5% [4]. - The projected revenue for 2025 is 3.11 billion CNY, with a growth rate of 10.23%, followed by 3.49 billion CNY in 2026 and 3.92 billion CNY in 2027 [5]. Financial Metrics - The company’s gross margin is expected to remain stable around 59.6% to 61.0% over the next few years, with a projected return on equity (ROE) increasing from 0.9% in 2024 to 3.1% in 2027 [11]. - The price-to-earnings (P/E) ratio is projected to decrease from 102 in 2024 to 28 in 2027, indicating an improving valuation as profitability increases [12].

Group 1: Tianrongxin - Tianrongxin's sales of intelligent computing integrated machines exceeded 2 million units in Q1 2025, with orders surpassing 20 million, and annual sales expected to exceed 100 million [1] - The intelligent computing integrated machine is based on self-developed cloud computing products, providing a complete platform for intelligent applications, with prices ranging from hundreds of thousands to two million [1] - There is significant growth in demand for security in various sectors, including information security, cloud security, industrial internet security, and vehicle networking [1] - The company has partnered with insurance companies to launch various cybersecurity insurance products, with a business model that includes pre-assessment and post-service [1] - Downstream demand is expected to remain stable in Q1 2024, with high-quality orders remaining steady, indicating positive future business opportunities [1] - Revenue from government sectors is projected to decline in 2024 due to macroeconomic impacts and low-margin project reductions, but stable growth is expected in 2025 [1] - Supply chain impacts are currently minimal, but uncertainties may arise in the future, and the company has prepared in advance [1] - After years of intense competition, some manufacturers are beginning to weaken, which may improve industry competition [1] - AI applications are expanding security boundaries, increasing security demand, and enhancing customer security spending [1] - The workforce is expected to remain stable in 2025, with over 2,000 R&D personnel and a slight increase in sales staff [1] - No goodwill impairment is expected in 2025, while 2023's impairment was due to specific circumstances [1] Group 2: Meinuohua - Meinuohua is in a growth and profit recovery phase for 2024, with overall operations showing steady growth, particularly in the finished drug sector [2] - The raw material sector has achieved market share breakthroughs with multiple new products, while the CDMO sector is progressing smoothly despite international macroeconomic impacts [2] - The company is actively embracing innovation and plans to make it a key strategic focus for future development [2] - Projected revenue for 2024 is 1.373 billion, representing a year-on-year increase of 12.85%, with API business growth at 6.1% and self-operated business growth at 83.52% [2] - TianKang Pharmaceutical's revenue increased by 51%, and the net profit attributable to the parent company reached 66.81 million, up 476.64% year-on-year [2] - Overall gross margin is 32.61%, an increase of 1.74% compared to 2023 [2]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][10]. Core Views - The company's revenue performance for the year is impacted by weak downstream demand, while collaboration with China Mobile continues to deepen [1][5]. - In 2024, the company achieved a revenue of 3.315 billion yuan, a year-on-year decrease of 26.44%, and a net profit attributable to shareholders of -226 million yuan, a year-on-year decrease of 130.53% [4][10]. - The company is focusing on strategic collaboration with China Mobile, enhancing product offerings in AI security, cloud security, and data security, which are expected to drive future growth [6][10]. Financial Performance Summary - In 2024, the company's revenue from security products was 1.905 billion yuan, down 26.12% year-on-year, while revenue from security operations and services was 1.383 billion yuan, down 27.20% year-on-year [5]. - The gross margin for 2024 was 58.77%, an increase of 1.00 percentage points compared to the previous year [5]. - The company’s R&D expenses reached 852 million yuan in 2024, a year-on-year increase of 4.6% [5]. - The net profit margin for 2024 was -6.86%, a decrease of 23.27 percentage points year-on-year [5]. Future Earnings Estimates - The company is projected to have earnings per share (EPS) of 0.25, 0.32, and 0.40 for the years 2025, 2026, and 2027, respectively [10]. - Corresponding price-to-earnings (P/E) ratios for these years are estimated at 61.00, 47.19, and 37.94 [10].

Group 1 - Major Chinese stocks saw pre-market gains, with NIO and Li Auto both rising over 5% [1] - Nvidia's stock rose nearly 1% in pre-market trading, with market focus on CEO Jensen Huang's keynote speech at the GTC conference [1] - Gold prices broke through $3020 per ounce, reaching a new historical high with a year-to-date increase of over 15% [1] Group 2 - Bridgewater's flagship hedge fund, Pure Alpha II, has increased by 11.3% year-to-date, contrasting with significant losses in the broader U.S. stock market [2] - Novo Nordisk's stock rose 3% in pre-market trading after regaining membership in the British pharmaceutical industry association [2] - Bitcoin ETFs have experienced the longest outflow of funds, totaling over $5.5 billion over five weeks [2] Group 3 - Wells Fargo reiterated a "sell" rating on Boeing, raising the target price from $103 to $113, while indicating further challenges ahead for the company [3] - Macquarie warned that Trump's economic policies could potentially trigger a stock market crash, citing a nearly 20% risk of decline from recent peaks [3]