Northeast: First Securities gives a "Buy" rating to EDIANYUN (02416) as the inflection point in IT service performance begins to emerge.

Northeast has released a research report stating that it has initiated coverage on EDIANYUN (02416) for the first time, giving it a "buy" rating. The bank expects that during this economic cycle, more and more small and medium-sized enterprises will enhance their risk resistance by leasing equipment from office equipment suppliers. The company's performance is expected to continue to grow, with projected operating revenues of 1.336/1.604/2.130 billion yuan and net profits attributable to shareholders of 0.47/1.48/2.67 billion yuan for the years 2024-2026, respectively. Key points of the report include: The company is an office cloud service enterprise that provides on-demand office IT solutions and other services. The company primarily provides office IT comprehensive solutions and develops various products to meet various customer needs through a subscription model. This model provides hardware, SaaS software, equipment configuration, deployment of engineers, operation support, performance optimization, and equipment management services (including equipment ordering, subscription management, on-site inspections, and bulk shipping) in one service package. Customers can flexibly subscribe or cancel office IT services according to changing needs. This can help customers extend the stable operation time of office IT to the maximum, save operating expenses, increase employee productivity, and drive business growth. The SaaS product Easy Inventory aims to help enterprise customers manage assets and inventories from purchase and storage to use and disposal, and charge annual subscription fees. As of the first half of 2024, the company had 49,737 active customers, a year-on-year growth of 10.4%, and a high customer retention rate, which remained the same as the same period last year; the number of service devices approached 1.33 million units, a year-on-year growth of 15.6%. Continuously iterate product line to meet the needs of small and medium-sized customers. Under economic pressure, small and medium-sized enterprises are turning to lower-priced office IT equipment, so the company has developed and launched the EDIANYUNA101 all-in-one machine ahead of time to respond to macroeconomic impacts and changes in customer demand. With its simple appearance and leading performance, this product meets the IT needs of ordinary positions in small and medium-sized enterprises while significantly reducing monthly subscription fees. With the combined effect of new produc...