sunline(300348) HTSC·2025-04-18 04:34Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 14.81 RMB [8][9]. Core Views - The company reported a revenue of 1.736 billion RMB in 2024, a year-on-year decrease of 9.46%, and a net profit attributable to the parent company of 18.586 million RMB, down 42.18% year-on-year. The decline in revenue and profit is attributed to the long implementation cycles of certain projects, which have not yet reached the revenue recognition point [1][2]. - The company is expected to see a recovery in revenue in 2025, driven by the acceleration of overseas business expansion and the commercialization of AI applications [1][3]. - The company has successfully implemented its core banking system in Southeast Asia, with a significant increase in overseas contracts, which now account for 20% of total contracts [3]. - The introduction of Multi-Agent systems is anticipated to enhance the commercialization of AI in banking core systems, potentially increasing the average transaction value [4]. Summary by Sections Financial Performance - In 2024, the company's digital financial solutions generated 1.043 billion RMB in revenue, a decrease of 9.20% year-on-year. The big data application solutions generated 574 million RMB, down 7.35%, and the full financial value chain management solutions generated 119 million RMB, down 20.32% [2]. - The company expects to see accelerated revenue growth in 2025 as earlier projects reach revenue recognition [2]. Market Expansion - The company has deepened its market presence in Malaysia, Thailand, and Indonesia, with over 60 clients and a significant contract signed with Thailand's Huishang Bank worth 49.6 million USD [3]. - The total addressable market (TAM) is expected to continue to grow as the company expands its overseas business [3]. Profitability Forecast - The net profit forecast for 2025 is adjusted downwards to 84 million RMB, reflecting a decrease of 18.7%, and for 2026 to 122 million RMB, a decrease of 21.7%. The expected net profit for 2027 is 154 million RMB [5]. - The company’s EPS for 2025 is projected to be 0.10 RMB, with a compound annual growth rate (CAGR) of 15% for revenue from 2025 to 2026, which is higher than the average CAGR of comparable companies [5][7].