20230525-中邮证券-新致软件-688590.SH-传统业务增速恢复_AI+保险应用前景可期_5页_446kb

Summary of NewZhi Software (688590) Research Report

Company Overview

NewZhi Software is a leading software service provider established in 1994 and listed on the A-share STAR Market in 2020. The company specializes in IT solutions for financial institutions, particularly insurance and banking, leveraging technologies like cloud computing, big data, artificial intelligence, and blockchain. With over 20 years of experience in the financial sector, it holds a significant market share in China's insurance and banking IT services.

Financial Performance

The company's financial performance recovered notably in 2023Q1, with revenue up by 2475% and net profit growing 10136%. Overall, 2022 was affected by the pandemic, but 2023 shows strong improvement. EPS projections for 2023-2025 are 0.52, 0.83, and 1.10 yuan per share, with corresponding PE ratios of 2862x, 1798x, and 1355x. A detailed financial table shows revenue growth from 1315 million yuan in 2022 to 3150 million yuan by 2025.

AI Integration Strategy

NewZhi has been investing in AI since 2018, integrating generative AI, including ChatGPT, to enhance its offerings. The release of the NewZhi X12 platform and "Xiao Xin robot" in 2023 improved data indexing, retrieval, and customer interactions specifically for the insurance industry. This initiative helps address channel and operational pain points, such as in marketing, sales, and customer service, potentially reducing costs and driving new business models like AI-driven personalized advice.

Investment Recommendation

The research recommends an initial "Buy" rating due to the company's leadership in insurance IT and its emerging AI applications. Analysts expect moderate growth driven by AI adoption. Based on earnings estimates, the stock offers attractive potential but with high PE multiples reflecting risk.

Key Risks

Potential risks include slower-than-expected AI technology evolution, underperformance in insurance IT demand, and increased market competition, which could impact growth and profitability.

Analyst and Source Information

This report is from Zhongyou Securities Research Institute, authored by analysts Sun Yeliang and Chang Yuting. Disclaimer: Investors should read the full report and consider related risks before decisions.