Group 1 - The 15th National Games will be held in November 2025 across the Guangdong-Hong Kong-Macao Greater Bay Area, serving as a significant opportunity to promote national fitness and the high-quality development of sports [1][2] - Guangdong Jinyu Transportation Co., Ltd. has a strong track record in providing transportation services for large-scale events, having successfully managed the transportation for the 2010 Asian Games with zero complaints and zero accidents [2][3] - The company has evolved into a benchmark in the passenger transport industry, operating a fleet of over 300 new energy vehicles after 15 years of development since its establishment in 2007 [2][3] Group 2 - The company plans to utilize a digital scheduling system and aims for 80% of its fleet to be new energy vehicles, which is expected to enhance operational efficiency by 30% and reduce carbon emissions by 20 tons [3] - Jinyu Transportation has designed special "Sports + Culture" bus lines to connect the event with local cultural experiences, showcasing Guangzhou's unique cultural charm [3] - The company is committed to supporting the event by sponsoring transportation services and advertising resources, reflecting its dedication to contributing to the success of the National Games [3]

Investment Rating - The report maintains a "Recommended" rating for the company [6][7]. Core Views - The company reported a revenue of 5.198 billion yuan in 2024, a year-on-year decline of 22.69%, with a net profit attributable to shareholders of -413 million yuan. For Q1 2025, revenue was 640 million yuan, down 8.85%, with a net profit of -80.625 million yuan [3][4]. - Despite short-term performance pressure, the long-term positive trend remains intact. The company is positioned as a leader in the domestic operating system market and is expected to benefit from the national strategy for information technology innovation [3][4]. - The company's self-developed software business showed improvement, with revenue reaching 1.719 billion yuan in 2024, up 5.01% year-on-year, and a gross margin of 77.38%, an increase of 4.49 percentage points [4][5]. - The subsidiary, Kylin Software, continues to lead the Chinese Linux market for 13 consecutive years, with 2024 revenue of 1.438 billion yuan and a net profit of 502 million yuan, reflecting growth from the previous year [4][5]. - The company is enhancing its collaboration across the industry chain, with advancements in its Kylin operating system across various platforms and integration with AI technologies [5]. - The company is also making strides in the tax sector with the successful implementation of the Golden Tax Phase IV project, which significantly reduces transaction costs [5]. Financial Summary - The projected revenues for 2025-2027 are 6.923 billion yuan, 7.855 billion yuan, and 8.915 billion yuan, respectively, with growth rates of 33.2%, 13.5%, and 13.5% [9][10]. - The net profit attributable to shareholders is expected to recover to 127 million yuan in 2025, 255 million yuan in 2026, and 345 million yuan in 2027, with corresponding growth rates of 130.8%, 100.8%, and 35.3% [9][10]. - The report forecasts a PE ratio of 303X for 2025, 151X for 2026, and 112X for 2027, indicating a potential for valuation improvement as profitability returns [6][9].