Topsec(002212) 中航证券·2024-10-31 11:13Investment Rating - The investment rating for Tianrongxin (002212) is "Buy" [1]. Core Views - The report indicates that the company's operations are recovering, with management expecting the business to approach a turning point. The overall performance improved year-on-year in Q3 2024, overcoming adverse external conditions. The company achieved a total revenue of 1.582 billion yuan, a decrease of 3.98%, while the net profit attributable to shareholders was -169 million yuan, an increase of 31.83%. In Q3 alone, revenue reached 709 million yuan, an increase of 10.21%, and net profit was 36 million yuan, a significant increase of 200.73% [1]. - The order situation remains stable year-to-date, with substantial progress in key sectors. Orders in the healthcare sector increased by nearly 60%, in corporate groups by 20%, and in the tobacco industry by over 30%. New business directions show promising growth, with cloud computing revenue up by 9.98%, cloud security revenue up by 126.40%, and Xinchuang security revenue up by 57.96% [1][4]. - The company is actively exploring the integration of AI and security, advancing domestic product adaptation, and building an enterprise-level AI security capability system. It is also focusing on new industrial applications, including low-altitude economy and satellite internet [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, Tianrongxin reported a revenue of 1.582 billion yuan, down 3.98% year-on-year, and a net profit of -169 million yuan, up 31.83%. In Q3, revenue was 709 million yuan, up 10.21%, and net profit was 36 million yuan, up 200.73% [1]. - Revenue projections for 2024-2026 are 3.444 billion yuan, 3.948 billion yuan, and 4.528 billion yuan, respectively. Net profits are expected to be 254 million yuan, 308 million yuan, and 362 million yuan, with corresponding PE ratios of 31X, 25X, and 21X [5]. Business Strategy - The company aims to increase channel revenue contribution to 40%-50%, currently at less than 20%. This will be achieved through expanding the number of channel partners and enhancing the order contribution rate from existing partners. The management anticipates a recovery in market demand and a 30% increase in orders in Q4 [1][4]. - Tianrongxin has been recognized for its innovative products in data security, winning awards at industry competitions and being included in key product recommendation directories [1][4].