GLODON(SZ:002410) EBSCN·2024-08-23 04:09Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is expected to gradually recover its overall performance throughout the year, despite a decline in revenue and net profit in the first half of 2024 [2]. - The digital cost business shows resilience, with a revenue increase of 4.23% year-on-year, driven by the recognition of cloud contracts and growth in related products [2]. - The company is focusing on cost control and operational optimization, leading to a significant increase in net profit in the second quarter of 2024 [2]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 2.938 billion yuan, a decrease of 3.68% year-on-year, and a net profit attributable to shareholders of 192 million yuan, down 22.70% year-on-year [2]. - The digital construction business saw a revenue decline of 37.46%, while the digital design business revenue fell by 22.03% [2]. - The overseas business, however, reported a revenue increase of 11.29% [2]. Cost Management - The company has implemented strict cost control measures, resulting in a 14.3% decrease in sales expenses and a 4.6% reduction in R&D expenses in H1 2024 [2]. - The gross profit margin improved to 86.68%, an increase of 1.16 percentage points year-on-year, indicating a continuous improvement in revenue quality [2]. AI Development - The company launched the AI model AecGPT, which is designed to enhance the digital transformation of the construction industry, featuring 32 billion parameters and industry-specific knowledge [3]. - AecGPT was recognized as a typical application case at the 2024 Global Digital Economy Conference [3]. Profit Forecast - The profit forecast for 2024-2025 has been revised downwards to 585 million yuan and 826 million yuan, reflecting a decrease of 64.6% and 60.27% respectively [3]. - The expected EPS for 2024-2026 is projected to be 0.35, 0.50, and 0.61 yuan, with corresponding P/E ratios of 27x, 19x, and 16x [3].