It was covered for the first time, and a “increase in holdings” rating was given. We expect the revenue of Starring Technology in 2023-2025 to be 4.95/6.85/962 million yuan, respectively, and net profit of -2.40/-1.44/-0.11 billion yuan respectively; the combined FCFF and PS valuation method, according to the 2024 13.05 times PS valuation, the company is given a target price of 73.98 yuan, giving the company an “increase in holdings” rating.

Starring Technology is a leading big data company with a complete product line. Since its establishment, Starlink Technology has continued to be deeply involved in the field of big data. Currently, it has formed a basic software product and technical service system that includes cloud computing, big data, databases and artificial intelligence scenarios to help accelerate the digital transformation of government and enterprise customers, and enjoys a good market reputation in the big data industry.

Professional vector databases are inherently irreplaceable, and the market prospects are broad. Vector databases and traditional databases will not replace each other, but will exert their respective advantages in different scenarios; the emergence of vector databases will also promote traditional database support for vector data types. In the future, with the emergence of new application scenarios, vector databases need to adapt to different application scenarios and provide more flexible and diverse solutions to meet the needs of different users. The continuous enrichment of application scenarios and the growth of AI demand will drive the market space of vector databases to continue to rise, and it is estimated that the market space for vector databases will reach the level of 10 billion yuan in the future.

Starlink Technology has the three competitive advantages of “technology+resources+business model” and is expected to achieve development beyond expectations. The company is one of the first companies in China to enter the vector database field. It has rich industry experience and customer resources. At the same time, the company is rapidly entering the financial industry's major model field, and is expected to achieve backfeed vector database business development. Combining the advantages of technology, resources, and business models, the company, as a leader, is expected to surpass expectations with the rapid development of the industry.

Risk warning: the risk that customer expansion is not as fast as expected, customer demand shifts, talent competition will intensify, and fixed growth will not proceed smoothly.