Investment Rating - The report maintains an "Outperform" rating with a target price of RMB 13.09 [4][9]. Core Insights - The company is experiencing short-term pressure on performance due to project disturbances affecting Q3 revenue, with a revenue of RMB 1.20 billion for the first three quarters of 2025, down 24.01% YoY, and a net loss of RMB 235 million, an increase of RMB 66 million YoY [10]. - Despite the challenges, the company has a stable order book and an optimistic outlook for the year, with growth expected in the AI and cloud computing sectors [4][10]. - The intelligent cloud segment is emerging as a second growth curve, contributing RMB 129 million in revenue for the first three quarters, accounting for 10.73% of total revenue, with an expected annual growth rate of 10% [11]. - The company has made significant progress in quantum security and computing, launching products like quantum VPN and zero-trust solutions, which have gained recognition in key sectors such as government and finance [12]. Financial Summary - The company's total revenue for 2023 is projected at RMB 3,124 million, with a decline of 11.8% YoY, followed by an expected recovery to RMB 3,056 million in 2025, representing an 8.3% growth [3]. - The net profit for 2023 is forecasted to be a loss of RMB 371 million, with a turnaround expected in 2024 to a profit of RMB 83 million, and further growth to RMB 154 million by 2025 [3]. - The earnings per share (EPS) are expected to improve from -0.31 RMB in 2023 to 0.13 RMB in 2025 [3]. Business Segmentation - The cybersecurity product revenue is expected to decline by 11% in 2024 but recover with an 8% growth in 2025 [6]. - The cloud computing business is projected to grow by 10% annually, with a revenue of RMB 255.64 million in 2024 [6]. - Other business segments are expected to see a significant increase, with a projected growth of 35% in 2024 [6].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 13.09 CNY [6][13]. Core Views - The company faced short-term pressure on performance due to temporary project delays, but has maintained a stable order book and is expected to achieve optimistic annual results with high-quality development [2][13]. - The company's revenue for the first three quarters of 2025 was 1.202 billion CNY, a year-on-year decrease of 24.01%, with a net profit attributable to the parent company of -235 million CNY, indicating an expanded loss [13]. - The company is strategically positioning itself in the quantum security and quantum computing sectors, having made significant progress and launched products like quantum VPN, which enhances communication performance and reduces customer costs [13]. Financial Summary - Total revenue for 2023 is projected at 3,124 million CNY, with a decline of 11.8% year-on-year, while a recovery is expected in 2025 with an estimated revenue of 3,056 million CNY, reflecting an 8.3% increase [4][14]. - The net profit for 2023 is forecasted at -371 million CNY, with a significant recovery anticipated in 2024, reaching 83 million CNY [4][14]. - The company’s earnings per share (EPS) is expected to improve from -0.31 CNY in 2023 to 0.25 CNY by 2027 [4][14]. Business Segments - The intelligent computing cloud segment is expected to grow significantly, with projected revenue of 1.29 million CNY in the first three quarters of 2025, accounting for 10.73% of total revenue, and an annual growth rate of approximately 10% [13]. - The company’s key industries, such as telecommunications and transportation, showed year-on-year growth of 13.14% and 18.73%, respectively, contributing to a stable business foundation [13]. - The quantum computing sector has seen the launch of several products and partnerships, indicating a forward-looking strategy that aligns with industry trends [13].