Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [8]. Core Insights - The company is experiencing short-term performance pressure, but new generation products are expected to drive revenue growth [4]. - The company launched AI products WiNGPT 2.8 and WiNEX Copilot 2.1, enhancing its digital transformation solutions for healthcare institutions [5]. - The company has been focusing on technological innovation and deepening its medical information strategy since its establishment [6]. Financial Performance - In 2024, the company achieved revenue of 2.782 billion yuan, a year-on-year decrease of 12.05%, and a net profit of 88 million yuan, down 75.45% [4]. - For Q1 2025, the company reported revenue of 345 million yuan, a decline of 30.24%, and a net profit of 5 million yuan, down 68.18% [4]. - Revenue forecasts for 2025-2027 are 3.144 billion, 3.585 billion, and 4.088 billion yuan, respectively, with corresponding EPS of 0.18, 0.22, and 0.27 yuan [8][10]. Growth Projections - The company anticipates a revenue growth rate of 13.0% in 2025, followed by 14.0% in 2026 and 14.1% in 2027 [10]. - The net profit is expected to rebound significantly in 2025, with a growth rate of 356.4%, followed by 22.1% in 2026 and 20.7% in 2027 [10]. Market Position - The company has a total market capitalization of 24 billion yuan and a current stock price of 10.83 yuan [1]. - The stock has a 52-week price range of 5.15 to 13.24 yuan, indicating potential volatility [1].

Group 1: Financial Performance - The company's revenue and net profit declined significantly in 2024 due to deferred customer demand, delayed delivery acceptance, and the ongoing upgrade of the new product WiNEX, which has not yet converted into substantial revenue [17][11]. - In Q1 2025, the company reported a notable improvement in bidding amounts, indicating a potential recovery in market conditions [8][4]. - The company's gross profit margin has decreased primarily due to deferred customer demand and delays in the bidding process [14]. Group 2: Research and Development - The company reduced R&D expenses from CNY 333 million in 2023 to CNY 265 million in 2024, attributed to the maturation of the WiNEX product [5][9]. - In 2024, R&D investment was CNY 562 million, accounting for 20.21% of revenue, maintaining an average of over 20% in the past three years [12][7]. Group 3: Accounts Receivable and Debt Management - The company has seen a continuous increase in accounts receivable and contract assets, with government debt relief measures expected to improve collection rates [6][16]. - The company has a cautious approach to impairment loss provisions, reflecting the long payment cycles typical of public hospitals and health management departments [18]. Group 4: Market Position and Competition - The company believes it has a competitive edge in AI applications within the healthcare sector, having established an AI laboratory in 2017 and launched the WiNGPT product [15][3]. - The entry of major telecom operators into the healthcare information market is seen as a temporary challenge, with expectations of improvement in the future [10][6]. Group 5: Strategic Adjustments - The company has proactively abandoned low-quality hardware projects to focus on more profitable software and AI-related services [19][10]. - The company plans to enhance its market share and improve profitability through cost control and efficient project delivery [20][17].