Synergistic Information: From the “King of Scanners” to the digital pioneer. 1) Since its establishment in 2006, Hehe Information has rapidly developed into a leading enterprise in the field of artificial intelligence and big data with its three core products. The company drives the digital transformation of customers through continuous innovation. 2) In terms of shareholder structure, Zhen Lixin, as the actual controller of the company, holds 24.19% of the shares and maintains close cooperation with many well-known investment institutions. The company's management team consists of top talents in the industry, all graduated from well-known universities and have rich industry experience. 3) The company's main business: The company's main business layout covers the three major sectors of intelligent text recognition, commercial big data, and Internet advertising promotion. The smart text recognition sector accounts for the highest revenue share. 4) Financial analysis: 2019-2024H1's revenue is growing steadily, net profit is increasing year by year, the company's ability to control expenses continues to improve, and employee efficiency has improved markedly.

Intelligent text recognition: Technological innovation drives market growth, and the company continues to lead the industry. 1) With its technical advantages in the field of intelligent text recognition, Hehe Information continues to lead the industry. 2) C-side market: By seizing the opportunities of mobile internet, the company quickly gained a leading position in the field of document management and text recognition by launching two major products, Scanning Omnipotent and Business Card Omnipotent. The user experience and activity are far ahead in the industry. 3) B-side market: The company occupies a leading position in the fields of banking, securities, insurance, etc. Compared with integrated AI vendors, the company's focus and technical investment in the field of intelligent text recognition gives it a clear competitive advantage in customized solutions.

Commercial big data: widely used in C-side and B-side markets to promote digital transformation. 1) Through the commercial big data business, the company empowers enterprise decision-making and risk management, helps expand the market and optimize government governance, and promotes digital transformation. 2) C-side market: The company's product Qixinbao covers more than 0.3 billion enterprises and organizations, providing individual and business users with functions such as enterprise information inquiry, risk monitoring and dynamic tracking. 3) B-side market: The company serves a wide range of industries such as finance, manufacturing, real estate, etc. Through deepening the field of commercial big data, the company has gradually become a leading domestic data service provider. With scenario-based solutions and standardized SaaS services, the company provides accurate data support to customers in various industries and promotes enterprises to achieve digital transformation.

Profit forecast, valuation and investment rating: The company's net profit for 2024-2026 is expected to be 0.373/0.434/0.505 billion yuan, respectively. Based on the closing price on October 31, 2024, the corresponding PE is 57.6x/49.6x/42.6x, respectively. As a leader in the field of commercial big data and intelligent text recognition, Hehe Information has an important market position in the document recognition solutions industry. With leading advantages in intelligent text recognition and commercial big data, Huhe Information's customers are widely distributed in various industries such as finance and government affairs, promoting the improvement of office efficiency for downstream customers. As the digital transformation of downstream customers accelerates, customer demand for the company's business increases, and the company is expected to continue to grow in the future. First coverage, giving a “buy” rating.

Risk warning: Risk of technology upgrading, iteration, and R&D failure; risk of core technology leakage and intellectual property rights; risk of loss of core talent; risk of management capacity not adapting to the company's business development; public data used in research reports may be delayed or not updated in a timely manner.