SIE(300687) 国泰君安·2024-04-26 07:32Investment Rating - The investment rating for the company is "Buy" with a target price of 20.65 CNY, down from the previous target of 31.67 CNY [6][8]. Core Insights - The company's short-term performance is under pressure, but cost reduction efforts are beginning to show results. The company has actively controlled expenses and is expected to maintain a high profit margin in the future [6][8]. - The company reported a revenue of 22.54 billion CNY in 2023, a slight decline of 0.75% year-on-year, and a net profit of 2.54 billion CNY, which is a 1.98% increase year-on-year [6][8]. - The company is experiencing pressure from major clients, particularly a decline in revenue from its largest client, which has affected the growth rate of its ERP business. However, the non-major client segment is growing rapidly [6][8]. Financial Summary - The company’s revenue is projected to be 2,414 million CNY in 2024, with an EBIT of 355 million CNY and a net profit of 323 million CNY [8]. - The profit margin is expected to improve, with the operating profit margin projected at 14.7% in 2024, up from 8.8% in 2023 [8]. - The return on equity (ROE) is expected to increase from 9.6% in 2023 to 11.0% in 2024 [8]. Profitability and Valuation Metrics - The company’s EPS is projected to be 0.79 CNY in 2024, with a PE ratio of 26.20 [6][8]. - The net profit margin is expected to improve to 13.4% in 2024, indicating a focus on maintaining profitability despite revenue pressures [8]. - The company has maintained a stable gross margin, with efforts to enhance operational efficiency and cost control [6][8].