Group 1 - The company Vertex Software (603383.SH) has reported that as of September 17, there are currently 12 clients for its new core trading system A5, with 5 of them having fully launched the system [1] - An investor inquiry on the interactive platform highlighted that the company mentioned in its semi-annual report that there are over 10 A5 projects under construction, and by the 2024 report, it was stated that clients Dongwu, Donghai, and Macquarie Securities have fully implemented the A5 system, suggesting that there are at least 13 projects in total [3]

Investment Rating - The investment rating for the company is "Recommended" [1][4][16] Core Views - The company has made significant progress in its new trading business, integrating its products with trusted computing and AI capabilities [1][9] - The company reported a decrease in revenue and net profit for 2024, with revenue at 664 million yuan, down 10.78% year-on-year, and net profit at 194 million yuan, down 16.84% year-on-year [4][8] - The company continues to invest in R&D, maintaining a high absolute level of net profit margin despite a slight decline [8][9] Financial Performance Summary - **Revenue and Profit**: In 2024, the company achieved revenue of 664 million yuan, a decrease of 10.78% year-on-year, and a net profit of 194 million yuan, down 16.84% year-on-year [4][8] - **Future Projections**: Expected revenue growth for 2025-2027 is projected at 802 million yuan, 989 million yuan, and 1.234 billion yuan, respectively, with corresponding net profits of 239 million yuan, 297 million yuan, and 373 million yuan [7][14] - **Margins**: The gross margin for 2024 was 67.0%, with a net margin of 29.2% [8][14] R&D and Product Development - The company has increased its R&D investment to 152 million yuan in 2024, focusing on its "3+1" foundational technology platform [8][11] - The new trading system A5 has been successfully implemented with multiple brokerage firms, indicating strong market demand [9][11] Market Position and Strategy - The company is actively promoting financial innovation and has made strides in its new trading system and wealth management products, which are now integrated with AI capabilities [9][11] - The company has established a strong client base, with over 300 clients in its wealth management business [11] Valuation Metrics - The projected P/E ratios for 2025-2027 are 33.2, 26.8, and 21.3, respectively, indicating a favorable valuation outlook as earnings are expected to grow [7][14]