太极股份：中电科网信产业平台，自主可控驱动成长

Investment Rating - Buy rating, first-time coverage [2] Core Views - Revenue under short-term pressure, but significant improvement in quarterly profit [3] - Autonomous and controllable ecosystem is well-established, expected to benefit from government debt resolution measures [4] - Positioned as the core industry platform for China Electronics Technology Group Corporation (CETC) in the network and information sector, with shareholder confidence boosted by share buybacks [5] - Accelerated development of public data, with the company holding a leading advantage [5][6] - Expected to benefit from the development of the information innovation (Xinchuang) industry and data element industry [7] Financial Performance - Revenue for the first three quarters of 2024 was RMB 4.338 billion, down 16.92% YoY, with a net loss attributable to the parent company of RMB -28 million [3] - Q3 2024 revenue was RMB 1.724 billion, down 14.67% YoY, but net profit attributable to the parent company increased by 60.73% YoY to RMB 131 million [3] - Subsidiary Renmin Jincang achieved revenue of RMB 90.5672 million in H1 2024, up 19.40% YoY [4] Business Overview - Leading enterprise in e-government, smart cities, and key industry informatization [3] - Main business includes providing information system construction, cloud computing, and big data services for government, public security, and enterprise sectors [3] - Established a comprehensive autonomous and controllable product system, including Puhua operating system, Renmin Jincang database, and other key software products [4] Shareholder and Market Confidence - CETC positions the company as its core industry platform for network and information, providing strong support in policy, funding, and resources [5] - Major shareholder CETC Tai Chi (Group) Co Ltd and its affiliates plan to increase their shareholding by RMB 100-200 million and RMB 50 million respectively, with a total shareholding increase not exceeding 2% of the company's total shares [5] Future Outlook - Expected EPS for 2024-2026 are RMB 0.67, RMB 0.86, and RMB 1.13, with corresponding P/E ratios of 41.09x, 32.07x, and 24.34x [7] - Revenue growth is expected to rebound, with projected revenue for 2024-2026 at RMB 9.594 billion, RMB 10.732 billion, and RMB 12.122 billion, respectively [9] - Net profit attributable to the parent company is expected to grow significantly, with projected figures of RMB 418.76 million, RMB 536.63 million, and RMB 707 million for 2024-2026 [9]