CDG(SH:603018) Guoyuan Securities·2024-06-21 02:00Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected stock price increase of over 15% compared to the benchmark index [11][29]. Core Insights - The company is a leader in the transportation development and urban construction design sector, focusing on digital transformation and low-altitude economy opportunities, which are expected to create a second growth curve [8][20]. - In 2023, the company achieved revenue of 5.353 billion yuan, a year-on-year decrease of 8.32%, primarily due to declines in surveying design and project management services [8][25]. - The company is actively promoting digital transformation and innovation, enhancing its core competitiveness through the establishment of a digital intelligence center and related product series [8][24]. Financial Performance Summary - Revenue and Profitability: The company's revenue for 2023 was 5.353 billion yuan, with a net profit of 713.71 million yuan, reflecting a 2.08% year-on-year increase in net profit [15][25]. - Profit Margins: The gross margin for 2023 was 39.00%, an increase of 2.05 percentage points year-on-year, while the net margin was 13.33%, up by 1.18 percentage points [25]. - Expense Ratios: The company's expense ratio for 2023 was 18.35%, a decrease of 0.54 percentage points from the previous year, with management expenses seeing a significant reduction [25]. Future Projections - The company is projected to achieve net profits of 750 million yuan, 807 million yuan, and 863 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 1.10, 1.18, and 1.26 yuan per share [26]. - The report anticipates a steady improvement in profitability, with a focus on digital technology innovation and infrastructure development in the low-altitude economy sector [24][26].