JIT(003029) 光大证券·2024-08-20 02:16Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has upgraded its "AI + Cryptography" strategy, aiming to capture a broad market and is optimistic about its performance for the year [1][2]. - The company reported a revenue of 217 million yuan for the first half of 2024, a year-on-year decrease of 17.20%, and a net profit attributable to shareholders of -31 million yuan, with a slight narrowing of losses by 2.99% year-on-year [1]. - The cybersecurity market is expected to grow, providing opportunities for the company to leverage its core cryptography technology [1][2]. Summary by Sections Financial Performance - In H1 2024, the revenue breakdown shows: 1. Cybersecurity product revenue was 113 million yuan, down 29.94% year-on-year. 2. Cybersecurity service revenue was 63 million yuan, down 12.99% year-on-year. 3. Cybersecurity ecosystem revenue was 41 million yuan, up 45% year-on-year. - The gross margin for H1 2024 was 56.91%, an increase of 0.81 percentage points year-on-year [1]. - The company implemented cost reduction measures, resulting in a decrease in R&D, management, and sales expenses by 14.96%, 30.40%, and 8.46% respectively [1]. Market Outlook - The cybersecurity market in China is projected to grow from 12.16 billion yuan in 2023 to 20.8 billion yuan in 2028, with a five-year compound annual growth rate (CAGR) of 10.7% [1]. - The software and service segments of the cybersecurity market are also expected to grow, with CAGRs of 12.8% and 12.6% respectively [1]. Strategic Initiatives - The company is focusing on integrating advanced cryptography technology with AI and secure chip design to create comprehensive solutions [2]. - New projects include collaborations in cloud security and the development of AI-driven technical service robots to enhance operational efficiency [2]. - The company has adjusted its net profit forecasts for 2024 and 2025 to 5.7 million yuan and 14.5 million yuan respectively, reflecting a significant downward adjustment of 79.79% and 62.14% [2].