GSAFETY(SZ:300523) Soochow Securities·2024-09-29 23:40Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [3]. Core Viewpoints - The company is positioned as a leader in public safety technology, leveraging its technological advantages for comprehensive development [2][12]. - The company is actively seizing opportunities from the trillion-yuan national bond issuance and related policies, resulting in a significant increase in orders [2][3]. - The company’s revenue and profit forecasts indicate a positive growth trajectory, with expected net profits of 88 million, 110 million, and 135 million yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 10%, 26%, and 23% [3]. Summary by Sections Company Overview - Founded in 2005 and controlled by Tsinghua University, the company focuses on public safety and aims to be a global leader in this field, providing comprehensive solutions for emergency management and smart city safety [2][12]. - The company has received multiple national awards, highlighting its significant social impact and technological achievements [2][12]. Business Development - The company’s main business areas include urban safety, emergency management, consumer services, equipment and firefighting, overseas public safety, and safety education, with a strong emphasis on innovation and technology integration [2][14][16]. - The company has seen a substantial increase in signed contracts, with a nearly 60% year-on-year growth in the first half of 2024, driven by various national policies [2][3]. Financial Performance - The company’s revenue has shown steady growth, with total revenue projected to reach 2.368 billion yuan in 2024, up from 2.257 billion yuan in 2023, reflecting a year-on-year increase of 4.92% [3][29]. - The net profit for 2023 is expected to be 79.64 million yuan, with a significant increase in subsequent years, indicating a recovery in profitability [3][29]. Market Opportunities - The report highlights the favorable policy environment for the public safety industry, with multiple government initiatives aimed at enhancing safety infrastructure and emergency response capabilities [2][39]. - The company is well-positioned to benefit from the ongoing urbanization and the increasing demand for public safety solutions, as urban infrastructure continues to age and safety risks rise [39].