Introduction to this report:
As a digital leader in the immovable ecosystem, the company's future performance growth may exceed expectations as phased results of cloud service transformation have been achieved, favorable policies have been implemented frequently, and the superimposed product and customer structure have been significantly optimized.
Summary:
For the first coverage, a “gain” rating was given, and the target price was 3.23 yuan. The company's revenue for 2023-2025 is estimated to be RMB 16.67/17.91/1.964 billion yuan, net profit to mother of -2.95/-2.39/ -RMB 226 million, and EPS of -0.15/-0.12/-0.12 yuan, respectively. As an enterprise-level service leader, the company was given a target price of 3.23 yuan based on EV/sales and PS valuations. For the first time, coverage was given, and an “increase in weight” rating was given.
The digital leader in the immovable ecosystem, the transformation of cloud services has achieved remarkable results, and favorable policies are expected to accelerate the recovery of performance. The market believes that the company's revenue scale has declined and the profit side continues to lose money, and growth is worrying. We believe that the company is gradually completing the priority transformation of cloud services and optimizing product layout. Considering the downturn in the housing market, some developers are still cautious about digital investment due to financial difficulties. Although profits and performance are under pressure in the short term, phased results have been achieved in expanding the industry, infrastructure and stock markets, and there are frequent favorable policies in the real estate sector, recovery in industry sentiment, and the continuous commercial implementation of AI innovations. Combined with the continuous expansion of overseas market space and the effects of cost control, the company's loss recovery is expected to gradually accelerate, and future performance growth may exceed expectations.
Core logic: Focus on optimizing the revenue structure of high-quality customer groups of state-owned enterprises, and build a new engine for growth with a large model in the real estate sector. The company continues to increase investment in innovation and R&D of core products, accelerate the adaptation of the Skyline platform and digital technology innovation system, and cooperate with ecological partners to create an exclusive AI model in the real estate field to empower the cloud customer line. In terms of sales, the company gathers various state-owned enterprise customer groups, provides differentiated products and services, and continues to break through the revenue share of state-owned enterprise customers.
At the same time, the company launched an internationalization strategy to gradually enter the digital real estate market in Southeast Asia and the Middle East-related countries, and the new market space will also contribute to additional business volume.
Catalysts: Cloud service revenue share continues to rise, overseas business expansion accelerates
Risk warning: industry recovery falls short of expectations, and the customer acquisition rate of state-owned enterprises falls short of expectations