Hundsun(600570) 华创证券·2025-04-28 00:44Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][18]. Core Views - The company is experiencing a bottoming out of its performance, with growth driven by AI and domestic innovation [2]. - The report highlights a short-term pressure on core business but anticipates a recovery in demand as market conditions improve [7]. - Cost reduction and efficiency improvements are expected to enhance profitability, while ongoing R&D investments are aimed at maintaining long-term competitive advantages [7]. - The integration of AI technology is set to reshape the financial technology ecosystem, with significant growth potential in domestic innovation applications [7]. Financial Performance Summary - Total revenue for 2024 is projected at 65.81 billion yuan, a decrease of 9.6% year-on-year, with a net profit of 10.43 billion yuan, down 26.8% year-on-year [3][7]. - Revenue is expected to recover in the following years, with estimates of 71.22 billion yuan in 2025, 76.27 billion yuan in 2026, and 81.51 billion yuan in 2027 [7]. - The company’s earnings per share (EPS) is forecasted to increase from 0.55 yuan in 2024 to 0.85 yuan in 2027 [3][7]. Business Segment Performance - Wealth technology services reported revenue of 1.43 billion yuan, down 17.5% year-on-year [7]. - Asset management technology services generated 1.57 billion yuan, a decline of 8.38% year-on-year [7]. - Operations and institutional technology services saw revenue of 1.29 billion yuan, down 10.24% year-on-year [7]. - Innovative business revenue was 515 million yuan, decreasing by 7.34% year-on-year [7]. - Data services revenue reached 354 million yuan, down 8.13% year-on-year [7]. Valuation Metrics - The company is projected to have a price-to-earnings (P/E) ratio of 47 in 2024, decreasing to 31 by 2027 [3]. - The price-to-book (P/B) ratio is expected to decline from 5.6 in 2024 to 4.0 in 2027 [3]. - The target price is set at 33 yuan, based on a 50 times P/E for 2025 [7].