Investment events: Recently, the company released its 2024 semi-annual report. With 2024H1, the company achieved operating income of 0.929 billion yuan, down 1.14% year on year; net profit due to mother was 0.091 billion yuan, up 304.11% year on year; net profit attributable to shareholders of listed companies after excluding share payments, accrued interest on convertible bonds, and non-recurring profit and loss was 0.061 billion yuan, an increase of 9.1892 million yuan over the previous year, up 17.60% year on year.

Revenue declined slightly, winning bids for several tens of millions of projects. With 2024H1, the company achieved revenue of 0.929 billion yuan, a year-on-year decline of 1.14%. 1) By product, 2024H1 technology development achieved revenue of 0.592 billion yuan, a year-on-year increase of 0.05%; technical services of 0.319 billion yuan, an increase of 5.22%; and consulting services of 0.016 billion yuan, an increase of 24.37% year-on-year. 2) Looking at specific business, in the field of credit management, the bank credit system is undergoing extensive restructuring. During the reporting period, the company won 4 10-million-level independent credit projects and more than 10 new credit-related business projects, with a total amount of over 100 million; in the data business field, it won bids for data enabling projects of many national joint-stock banks and data application projects for nearly ten cities/agricultural and commercial banks; in the field of credit cards, the company launched the CreditX Meru 2.05 version to further upgrade product functions; in the field of risk management, the company maintained its leading position in the market in the first half of the year Products such as the new RWA regulations and FRTB won bids from several banks.

Expense control is good, and the profit side is growing rapidly. 2024H1, the company's sales/management/R&D expense ratio was 6.04%/8.14%/7.38%, respectively. Among them, the management cost rate and R&D expense ratio decreased by 0.36% and 4.96%, respectively. 2024H1 achieved rapid growth on the company's profit side, with net profit attributable to mother of 0.091 billion yuan, up 304.11% year on year; net profit attributable to shareholders of listed companies after excluding share payments, accruing interest on convertible bonds, and non-recurring profit and loss was 0.061 billion yuan, an increase of 9.1892 million yuan over the previous year, up 17.60% year on year.

Build a financial supercomputing research and development center, and buy back shares to enhance confidence. The company signed a cooperation agreement with Hunan University to jointly build a financial supercomputing research and development center based on the supercomputing platform of the National Supercomputing Center in Changsha. Currently, it has jointly released the Tianze multi-modal model with Hunan University. At the same time, the company is committed to protecting the rights and interests of investors, and firmly believes in the company's own value and confidence in future development prospects. By the end of the reporting period, the company had repurchased 4,346,480 shares, with a total transaction amount of RMB 50,063,158 (excluding transaction fees).

Investment advice: Forecast that the company's revenue for 2024-2026 will be 2.133/2.376/2.672 billion yuan, and net profit to mother will be 0.141/0.173/0.215 billion yuan, respectively. The corresponding PE is 31/25/20 times, respectively, maintaining the “buy” rating.

Risk warning events: business development falls short of expectations, slow policy progress, untimely data updates, etc.