Yusys Technologies(300674) 国泰君安·2024-10-31 01:12Investment Rating - The report maintains a "Buy" rating for the company with an updated target price of 35.72 CNY, reflecting an increase from the previous target of 16.08 CNY [2][4]. Core Insights - The company's operational quality has significantly improved, with profits slightly exceeding expectations. The focus is on opportunities in the disposal of non-performing assets, which is expected to enhance both performance and valuation growth potential [2]. - The company reported a revenue of 2.351 billion CNY for the first three quarters of 2024, a year-on-year decline of 23.05%. However, the net profit attributable to shareholders reached 262 million CNY, a year-on-year increase of 64.36%, indicating a turnaround in Q3 with a profit of 99 million CNY [2]. - The comprehensive gross margin for the first three quarters was 32.67%, a significant increase of 4.98 percentage points compared to the same period last year, driven by a reduction in low-margin integrated business and a strategic shift towards higher-quality business [2]. - The establishment of a joint venture in asset management is expected to open new growth avenues, leveraging technology to enhance the management of non-performing assets [2]. Financial Summary - The company’s revenue for 2024 is projected to be 4.149 billion CNY, reflecting a 20.3% decrease from 2023. However, net profit is expected to grow to 380 million CNY in 2024, marking a 16.8% increase from 2023 [3]. - Earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 0.54 CNY, 0.64 CNY, and 0.74 CNY respectively, with corresponding price-to-earnings (PE) ratios of 46.80, 39.23, and 34.24 [3][4]. - The company’s net asset return rate is projected to improve from 7.9% in 2023 to 10.1% by 2026, indicating a positive trend in profitability [3].