On April 26, Shenzhou Holdings (00861) dived intraday and closed down more than 14%, drawing market attention. Industry insiders analyzed that the main reason for the current decline of Shenzhou Holdings was affected by the year-on-year profit change from profit to loss in the subsidiary Shenzhou Information Quarterly Report. The quarterly report showed that due to factors such as reduced revenue, delays in repayment, and increased R&D investment, the company lost 56 million yuan. As a result, the market judged that Shenzhou Holdings' performance would also be affected. However, is that really the case? First, although Shenzhou Information is a subsidiary of Shenzhou Holdings, its profit accounts for only a small portion of Shenzhou Holdings' total profit. Short-term profit fluctuations of Shenzhou Information will not have a significant impact on Shenzhou Holdings. Second, the main business of Shenzhou Information itself is also developing well, and the financial industry's soft service revenue increased 19.8% year over year.

In fact, Shenzhou Holdings performed very well in the first quarter. The main business signed large orders, and big data and overseas business grew strongly. Driven by the current boom in artificial intelligence, various industry organizations are also optimistic about the future development prospects of Shenzhou Holdings. According to reports, in the first quarter, Shenzhou Holdings successively won the 460 million yuan bid for the Changchun New Area Intelligent Computing Center project and China Mobile Terminal Corporation surpassed 467 million orders. It successfully delivered the first phase of the Hong Kong Special Administrative Region Government Big Model Intelligent Computing Center project totaling nearly HK600 million. Breakthrough progress was made in its main business. In addition, the company's digital trade also achieved good results. In the first quarter, the company's digital trade business in Changchun achieved an import and export volume of 2.8 billion yuan, accounting for 67% of the total import and export volume of the Xinglong Free Trade Zone, reaching a total of 12.8 billion yuan over three years. Overall, the overall development trend of Shenzhou Holdings is good, and the development prospects are very optimistic.

Well-known domestic and foreign investment institutions also acknowledged the development of Shenzhou Holdings. The internationally renowned investment bank Jefferies (Jefferies) maintained a buying rating on Shenzhou Holdings in its latest research report and raised the target share price to HK$4.30. According to the report, the company's big data business revenue increased 42% year over year, exceeding its expectations. Jefferies believes that the company is expanding rapidly in overseas markets, and overseas revenue in 2023 has doubled compared to the previous year, and predicts that the future will bring higher growth rates and greater gross profit contributions.

The Xingzheng Overseas Research Center, which has been at the top of the new wealth list for many years, is also optimistic about Shenzhou Holdings, maintains a buying rating, and is more optimistic about the future development prospects of Shenzhou Holdings. Societe Generale Securities believes that the company's main business is developing healthily, revenue growth is stable, big data business has achieved incremental breakthroughs, and the business structure is gradually being optimized. The layout of intelligent computing centers, data intelligence applications, and overseas markets provides the company with more room for development. The company's revenue for 2024/2025 is estimated to be 194/20.4 billion yuan, respectively, and net profit to mother is 51/540 million yuan.

In terms of industry research institutes, Shenzhou Holdings not only ranked second in the 2024 TOP100 next-generation information technology field, but was also successfully selected as the 2024 National “Artificial Intelligence +” Action Innovation Case 100 because of the application practice of knowledge mapping technology in smart water services in Changchun, becoming an industry model for new quality productivity and “artificial intelligence +” in China. The development of new quality productivity was first included in the 2024 “Report on the Work of the Government” and has become one of the key tasks of economic and social work this year. At the same time, the government work report also clearly proposed the launch of the “Artificial Intelligence +” campaign. This is a time when Shenzhou Holdings, which has a deep accumulation in the above fields, is underdeveloped.

This time, Shenzhou Holdings was misjudged by the market and the short-term correction did not reflect the real state of the company's operations. I believe that Shenzhou Holdings, which has a forward-looking layout and leading technical strength in the artificial intelligence era, will soon reverse the market misjudgment, return to a reasonable valuation range, and continue to lead the way in the future artificial intelligence circuit to achieve greater development.