Investment Rating - The report initiates coverage with a "Buy" rating for the company [7][8]. Core Views - The company focuses on its Prophet platform to provide AI capabilities, with a product structure that includes standardized and customized offerings. The revenue split for 2024 is expected to be 70% from the Prophet platform and products, and 30% from application development and other services [7]. - The management team is composed of top-tier technical experts with backgrounds in leading internet companies, which enhances the company's competitive edge [7]. - The standardization strategy is expected to drive rapid customer expansion in the short term and ensure long-term product stickiness and competitiveness [7][10]. - The company is also expanding into the consumer electronics market, which could generate over 2 billion yuan in annual revenue [7]. - The company is positioned as a domestic counterpart to Palantir, with similarities in product form, customer expansion, and development stages [7]. Financial Data and Profit Forecast - Revenue projections for 2023A to 2027E are as follows: - 2023A: 4,204 million yuan - 2024A: 5,261 million yuan - 2025E: 6,852 million yuan - 2026E: 8,819 million yuan - 2027E: 11,226 million yuan - The expected revenue growth rates are 36.4% for 2023A, 25.1% for 2024A, 30.2% for 2025E, 28.7% for 2026E, and 27.3% for 2027E [6]. - The net profit attributable to ordinary shareholders is projected to turn positive by 2025E, with figures of 55 million yuan, 283 million yuan, and 568 million yuan for 2025E, 2026E, and 2027E respectively, reflecting growth rates of 416.6% and 100.9% in subsequent years [6][8]. Key Assumptions - The revenue from the Prophet platform and products is expected to grow at rates of 43%, 36%, and 32% from 2025 to 2027, while the application development and other services are projected to decline slightly [9]. - The company has accumulated significant industry know-how through benchmark projects, which supports its standardization strategy [10][44]. Market Position - The company ranks first in the Chinese machine learning platform market share for 2024 and has been a leader for seven consecutive years [25][26]. - The report highlights the company's ability to adapt to the unique characteristics of the Chinese software market, focusing on standardization while addressing customization needs [10].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [7] Core Views - The company is positioned to benefit from a standardized product strategy that enhances customer acquisition in the short term and maintains competitive advantages in the long term [6][9] - The company is expected to achieve significant revenue growth, with projections of 68.52 billion, 88.19 billion, and 112.26 billion CNY for 2025-2027, reflecting year-on-year growth rates of 30%, 29%, and 27% respectively [7][8] - The company aims to transition towards standardized products, which is anticipated to improve market penetration and customer retention [6][9] Financial Data and Profit Forecast - Revenue (in million CNY) for the years 2023A to 2027E is projected as follows: - 2023A: 4,204 - 2024A: 5,261 - 2025E: 6,852 - 2026E: 8,819 - 2027E: 11,226 - The revenue growth rates are expected to be 36.4% in 2023, 25.1% in 2024, 30.2% in 2025, 28.7% in 2026, and 27.3% in 2027 [5][7] - The net profit attributable to ordinary shareholders (in million CNY) is forecasted as follows: - 2023A: -909 - 2024A: -269 - 2025E: 55 - 2026E: 283 - 2027E: 568 - The net profit growth rates are projected to be 416.6% in 2026 and 100.9% in 2027 [5][7] Business Segmentation - The company's business can be divided into two main segments: 1. Prophet Platform and Products (70% of 2024 revenue) 2. Application Development and Other Services (30% of 2024 revenue) [6][22] - The Prophet Platform includes standardized software and hardware products, while Application Development encompasses SHIFT intelligent solutions and AIGS services [6][22] Market Positioning - The company is recognized as a leader in the Chinese machine learning platform market, having maintained the top position for seven consecutive years [20][21] - The company’s strategy focuses on leveraging industry know-how accumulated through benchmark projects to enhance its standardized product offerings [9][38] Growth Catalysts - Key growth drivers include exceeding revenue growth expectations, increased revenue contribution from the Prophet platform, successful expansion into the consumer electronics market, and rising downstream AI demand [10]