Beijing (SZ:300803)2024-05-29 11:00Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of 56.74 yuan based on a 2.4x PEG and a corresponding 70.7x PE for 2024 [2]. Core Insights - The company has entered a growth phase, with a compound annual growth rate (CAGR) of 21.4% in revenue and 27.6% in net profit from 2018 to 2022. However, in 2023, revenue decreased by 11.3% to 1.11 billion yuan, and net profit fell by 78.5% to 73 million yuan due to a sluggish capital market and increased management expenses [1][14]. - The company focuses on financial information services, maintaining a high gross margin of over 80% from 2013 to 2023, which is among the leading levels in comparable companies [1][16]. - The acquisition of a 34.2% stake in Vanguard Fund enhances the company's wealth management capabilities, positioning it to develop a business model centered on financial information services, with securities and funds as complementary wings [1][12]. Financial Performance - Revenue and net profit projections for 2024E-2026E are 3.28 billion, 4.95 billion, and 6.29 billion yuan, respectively, with year-on-year growth rates of 352.3%, 50.6%, and 27.2% [2][3]. - The company's revenue for 2023 is projected to be 1.11 billion yuan, with a gross margin of 85.7% and a return on equity of 3.9% [3][14]. Business Segments - The financial information service segment is the largest source of revenue, accounting for approximately 90% of total revenue from 2017 to 2023. The company has a significant customer base of professional investors, leveraging partnerships with brokerages to generate advertising service fees [1][16]. - The company has launched various products targeting different customer segments, with a focus on high-end clients. The "Wealth Master" series and "Winning Series" products contribute significantly to revenue, with the "Private Enjoyment Edition" and "Pioneer Edition" accounting for over 90% of financial information service revenue [19][21]. Cost Structure - The company maintains a stable expense ratio, with sales expenses constituting around 50% of revenue due to a direct sales model targeting individual investors. Management expenses have increased due to investments in the newly acquired Maigao Securities [23][26].