Investment Rating - The investment rating for the company is "Buy" with a target price of 10.70 RMB [8][9]. Core Views - The company achieved a revenue of 2.947 billion RMB in 2024, representing a year-on-year increase of 7.20%, but reported a net loss of 199 million RMB, a decrease of 90.00% year-on-year. The performance was below previous expectations due to slower recovery in downstream demand and increased provisions for long-term equity investment impairment and bad debts [1]. - The company is progressing well in its SaaS transformation, with an annual recurring revenue (ARR) of 523 million RMB in 2024, up 25.1% year-on-year. The total number of enterprise customers exceeded 80,000, with an average renewal rate of over 90% [2]. - The company is enhancing its platform strategy, with hotel information management and payment system businesses growing by 14.55% and 8.68% year-on-year, respectively. The expansion into overseas markets is accelerating, with significant contracts signed with major hotel groups [2]. - The overall gross margin for 2024 was 34.87%, a decrease of 2.85 percentage points year-on-year, primarily due to increased amortization of intangible assets. However, the company improved its expense control, with sales, management, and R&D expense ratios decreasing significantly [3]. - In Q1 2025, the company reported a revenue of 592 million RMB, down 6.20% year-on-year, but a net profit of 21.11 million RMB, an increase of 85.36% year-on-year, indicating a recovery in profitability [4]. Summary by Sections Financial Performance - The company’s revenue for 2024 was 2.947 billion RMB, with a year-on-year growth of 7.20%. The net profit attributable to the parent company was a loss of 199 million RMB, down 90.00% year-on-year. The earnings per share (EPS) for 2025-2027 are projected to be 0.04, 0.06, and 0.08 RMB, respectively [1][5][7]. - The company’s operating cash flow improved to 67.13 million RMB in 2024, a year-on-year increase of 5.79% [3]. Business Development - The company is focusing on SaaS, platformization, and globalization, with significant growth in its SaaS business and a strong customer base in the hotel industry [2]. - The company has established a comprehensive platform integrating various management systems and is leveraging AI for product upgrades, enhancing its competitive edge [3]. Valuation and Forecast - The revenue forecast for 2025-2027 is set at 3.273 billion, 3.676 billion, and 4.196 billion RMB, respectively, with a downward adjustment of 15% and 22% for 2025 and 2026 [5][7]. - The target price of 10.70 RMB corresponds to a price-to-sales (PS) ratio of 8.9x for 2025, reflecting the company's successful SaaS transition and increasing subscription revenue [5].