On July 10, the company announced its 24-year semi-annual performance forecast. It is expected to achieve revenue of 3.71 billion yuan (+10%) to 3.88 billion yuan (+15%) in the first half of the year, net profit due to mother -0.75 billion yuan to -0.88 billion yuan, and net income not attributable to mother -0.75 billion yuan to -0.88 billion yuan (year-on-year loss reduction of 0.06 billion yuan to 0.19 billion yuan). Under the new round of fiscal and taxation system reform, the company's tax cloud platform has outstanding advantages in large customer markets. Maintain a buy rating.
Key points to support ratings
Losses were due to R&D investment and seasonal characteristics of the business. The company's net profit loss in 24 years was mainly due to: (1) The company's business operations had seasonal characteristics, and the share of revenue in the first half of the year's revenue was lower than that of the first half of the year's costs and expenses. (2) The amortization amount of intangible assets formed by the company's R&D investment increased by about 0.15 billion yuan over the same period last year. (3) Profit and loss from changes in the fair value of the company's other illiquid financial assets decreased by about 0.05 billion yuan year-on-year.
In the new round of fiscal and taxation system reform, the company's tax cloud platform has outstanding advantages for major customers. Since the fourth phase of the gold tax, the tax sector has evolved from “managing tax with tickets” to “governing taxation by numbers”. The 2024 “Report on the Work of the Government” once again mentions “planning a new round of fiscal and taxation system reform,” and the demand of enterprises for preferential tax management is expected to increase further. Through systematic tax-related data statistics, the company's tax cloud platform can analyze potential tax-related risk points under the current business model and achieve group-level tax planning. Currently, the company has received customers such as Midea Real Estate and CITIC Construction Investment Futures. In the large-scale enterprise market, the company has outstanding advantages.
AI+ continues to develop, and the business is expected to blossom more. Based on the YongPT enterprise service model, the company integrates AI into various business fields such as finance, human resources, marketing, R&D, procurement, and manufacturing.
In the first half of the year, the company helped Master Kong Baiying create AI recruitment, reducing the probability of an invalid interview. The candidate retest pass rate after passing the AI interview was as high as 90%, achieving a double improvement in recruitment efficiency and quality. In the future, the company's business is expected to expand into AI+ procurement, AI+ manufacturing and other fields to create new growth poles.
valuations
The net profit for 24-26 is estimated to be 2.1, 4.4, and 750 million yuan (considering the company's increased R&D investment and reduced by 8%-63%), EPS is 0.06, 0.13, and 0.22 yuan, and the corresponding PE is 153X, 74X, and 43X, respectively. The company's tax cloud platform has outstanding advantages for major customers and maintains purchase ratings.
The main risks faced by ratings
Industry competition intensified; business development fell short of expectations; technology research and development fell short of expectations.