CDG(SH:603018) Guotai Junan Securities·2024-07-11 23:31Investment Rating - The report assigns an "Accumulate" rating to the company, maintaining the previous rating of "Accumulate" [4]. Core Views - The company is actively developing four core technologies in vehicle-road collaboration: intelligent vehicle technology, intelligent roadside technology, communication technology, and cloud technology. These products have been implemented in several demonstration projects [4][5]. - The company is positioned to benefit from the low-altitude economy, with a self-developed airspace management platform and a projected revenue of approximately 1.2 billion yuan in 2023, with low-altitude business accounting for about 30% of this revenue [5][8]. - The company has reported a revenue of 390 million yuan from its digital and intelligent business in 2023, with over 50% of this coming from vehicle-road cloud-related business [5][11]. Summary by Sections Investment Highlights - The Ministry of Industry and Information Technology and other departments have announced 20 cities as pilot cities for intelligent connected vehicles, which is expected to support the company's growth [5]. - The company has developed a comprehensive digital technology solution for smart roads, ports, transportation, parks, and cities, with significant revenue contributions from vehicle-road cloud services in multiple provinces [5][11]. Financial Projections - The report maintains earnings per share (EPS) forecasts of 1.16, 1.25, and 1.35 yuan for 2024-2026, representing growth rates of 13%, 8%, and 7% respectively. The target price remains at 15.14 yuan, corresponding to a price-to-earnings (PE) ratio of 13 times for 2024 [5][9]. Technology Development - The company has launched the EICAD+AIRoad interactive digital design platform, which enhances design efficiency by over 10 times and is used by approximately 80% of the top traffic and municipal design institutes in China [5][9]. - The company is also engaged in developing various hardware products for vehicle-road collaboration, including edge computing units, millimeter-wave radar, and advanced driver-assistance systems [10][11].