Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company reported a total revenue of 2.947 billion yuan in 2024, representing a year-on-year growth of 7.2%, while the net profit attributable to shareholders was -199 million yuan, indicating an expanded loss compared to the previous year [6][7]. - In Q1 2025, the company achieved a revenue of 592 million yuan, down 6.2% year-on-year, but the net profit attributable to shareholders was 21 million yuan, reflecting an 85.4% increase compared to the same period last year [6][7]. - The company's Annual Recurring Revenue (ARR) for its SaaS business reached 520 million yuan in 2024, a growth of approximately 25% from 420 million yuan in 2023, with a customer retention rate exceeding 90% [7]. - The company's globalization strategy is still in its early stages, with revenue from outside mainland China accounting for 20.3% of total revenue, indicating potential for growth in the high-end hotel market globally [7]. - The cloud POS system continues to be promoted, with the cloud PMS system signing major clients, including New Macau Hotel Group and Kempinski Hotels, with a total of 629 hotels launched globally by the end of 2024 [7]. - The overall gross margin for 2024 was 34.9%, a decline from the previous year, primarily due to high amortization of intangible assets related to Daylight PMS, while Q1 2025 gross margin was 49.2%, remaining stable year-on-year [7]. - The operating cash flow showed improvement, with a net cash flow of 67.13 million yuan in 2024, up from 63.45 million yuan in 2023, and a Q1 2025 cash flow of -110 million yuan, an improvement from -150 million yuan in Q1 2024 [7]. - The report adjusts the revenue and profit forecasts for 2025-2026, now expecting revenues of 3.413 billion yuan and 4.024 billion yuan, and net profits of 63 million yuan and 190 million yuan respectively [7]. Financial Summary - The company is projected to achieve total revenues of 3.413 billion yuan in 2025, with a year-on-year growth rate of 15.8%, and a net profit of 63 million yuan [6][9]. - The gross margin is expected to stabilize at 40.9% in 2025, with a gradual increase in return on equity (ROE) from 0.9% in 2025 to 3.8% in 2027 [6][9].