Investment Rating - The report assigns an "Outperform the Market" rating for the company [5][28]. Core Views - The company is the only authorized ETC issuer in Jiangsu Province, with a focus on smart traffic electronic toll collection services, achieving 2.0679 million ETC users in 2023, accounting for 10.17% of the national total [3][37]. - The company is expected to experience steady revenue growth, with projected revenues of 915 million, 1.237 billion, and 1.669 billion yuan for 2024, 2025, and 2026 respectively, alongside net profits of 218 million, 305 million, and 414 million yuan [5][21]. - The report highlights the company's strategic focus on smart traffic management systems, with a diverse product range aimed at government agencies and transportation management entities [28][39]. Financial Summary - The company achieved a revenue of 742 million yuan in 2023, a year-on-year increase of 24%, and a net profit of 191 million yuan, up 26.7% from the previous year [21][12]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.54, 0.75, and 1.02 yuan respectively, with a dynamic PE ratio of 45-50 times for 2024 [5][21]. - The gross profit margin is expected to remain stable around 47% to 48% over the next few years [21][39]. Business Segmentation - The company's revenue from smart traffic electronic toll collection services is projected to grow at a rate of 21% annually from 2024 to 2026, while the smart traffic operation management system business is expected to grow at 25% and 50% in the next two years [23][39]. - The report indicates that the smart traffic operation management system business is becoming increasingly significant, with its revenue share rising from 37% in 2021 to 46% in 2023 [12][39]. Market Opportunities - The report notes that government policies supporting the digital transformation of transportation infrastructure present significant growth opportunities for the company [22][39]. - The company is well-positioned to benefit from the increasing demand for smart traffic solutions, particularly in the context of the ongoing digitalization initiatives in the transportation sector [22][39].
通行宝：领先的智慧交通供应商，紧抓车路云产业机遇，股东优势显著