Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company has shown stable revenue growth, with both B-end and G-end businesses progressing effectively. The introduction of AI technology is expected to help build a competitive moat in vertical industries [4][9] - The B-end business is experiencing significant market expansion, supported by favorable policies and a growing number of registered enterprises in China. The domestic financial and tax AIBM ecosystem service market is projected to reach 390.73 billion by 2028, with a compound annual growth rate of 74.9% [2] - The G-end business is deeply involved in the "Golden Tax Phase IV" construction, enhancing digital tax products that help enterprises reduce costs and improve efficiency. The company is actively developing a large model for tax services, leveraging over 20 billion financial and tax data to create a competitive advantage [3] Financial Summary - For the fiscal year 2023, the company reported revenue of 1,829 million, with a year-on-year growth rate of 7.7%. The net profit attributable to the parent company was 83 million, reflecting a decline of 42.1% year-on-year [1] - Revenue is projected to grow to 2,311 million in 2025, with a year-on-year growth rate of 18.8%, and net profit is expected to reach 277 million, marking a significant increase of 146.4% [1][9] - The company's return on equity (ROE) is forecasted to improve from 3.4% in 2023 to 10.3% in 2025, indicating enhanced profitability [1]

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [2][18]. Core Insights - The company achieved a revenue of 922 million yuan in the first half of 2025, representing a year-on-year growth of 13.25%. However, the net profit attributable to shareholders decreased by 19.52% to 71 million yuan [2]. - The second quarter revenue was 474 million yuan, with a year-on-year growth of 4.84%, while the net profit decreased by 16.58% to 46 million yuan [2]. - The company is focusing on a B-end strategic transformation, leveraging digital governance projects and AI-driven services to enhance long-term growth potential [4][8]. Financial Performance Summary - The total revenue forecast for 2025 is 2.308 billion yuan, with a projected growth rate of 18.7%. The net profit is expected to reach 219 million yuan, reflecting a significant increase of 94.2% compared to 2024 [4]. - The earnings per share (EPS) for 2025 is estimated at 0.54 yuan, with a price-to-earnings (P/E) ratio of 101 [4]. - The company maintains a healthy gross margin of 59.06%, indicating strong profitability [8]. Business Strategy and Development - The company is enhancing its research and development efforts, with R&D expenses increasing by 8.47% to focus on key product innovations and AI applications [8]. - The active user base for the company's platform has grown to 11.8 million, a 10.28% increase since the beginning of the year, with paid users reaching 7.78 million, up 10.04% [8]. - The strategic shift towards an AI-driven platform model aims to transform the company from a traditional software service provider to a more integrated service ecosystem [8]. Market Position and Future Outlook - The company is well-positioned in the digital governance sector, with ongoing projects enhancing its core market presence and driving revenue growth [8]. - The anticipated revenue for 2026 and 2027 is projected at 2.812 billion yuan and 3.510 billion yuan, respectively, with corresponding net profits of 449 million yuan and 646 million yuan [4][8].

Core Insights - The company reported a steady revenue growth of 13.25% year-on-year for H1 2025, reaching 922 million yuan, while the net profit attributable to shareholders decreased by 19.52% to 71 million yuan [1] - The gross margin declined to 59.06%, down 2.05 percentage points from the previous year, indicating potential cost pressures [1] - The company’s cash flow from operations was negative at -322 million yuan, worsening from -284 million yuan in the same period last year [1] Business Segments - The smart finance and taxation business generated 620 million yuan in revenue, an increase of 11.95% year-on-year, with active enterprise users growing by 10.28% to 11.8 million [2] - AI-driven products and services accounted for 26.59% of the smart finance and taxation business revenue, totaling 165 million yuan [2] - The company is enhancing its service capabilities through a three-tier value system in smart finance, focusing on practical tax services, compliance, and operational empowerment [3] Digital Services - The digital government business achieved revenue of 300 million yuan, reflecting a growth of 16.60% year-on-year, with data value services and products growing by 17% [4] - The company is positioning itself as a smart model service provider in the industry by developing the "Xiyou" AI platform and tax domain models [5] Financial Forecast - Revenue projections for 2025-2027 are estimated at 2.3 billion, 2.851 billion, and 3.907 billion yuan, with year-on-year growth rates of 18.22%, 23.95%, and 37.04% respectively [6] - The net profit attributable to shareholders is forecasted to be 147 million, 588 million, and 996 million yuan for the same period [6]