GLODON(002410) Huaxin Securities·2024-10-07 04:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][4]. Core Insights - The company, Glodon (002410.SZ), is a leader in the digital construction industry and is expected to benefit from the recovery of the real estate sector [2]. - The company's revenue has shown steady growth, increasing from 3.541 billion in 2019 to 6.591 billion in 2022, with a CAGR of 23.01%. However, in 2023, revenue slightly decreased by 0.42% year-on-year to 6.563 billion, while net profit dropped significantly by 88.02% to 116 million due to rising labor costs and asset impairments [2][3]. - The report highlights a potential turning point in performance, with a forecasted recovery in the real estate market leading to increased demand for construction information technology [2][3]. Summary by Sections Company Overview - Glodon, established in 1998, provides digital construction platform services, focusing on the entire lifecycle of construction projects. Its main business segments include digital cost, digital construction, and digital design, with digital cost and digital construction accounting for over 90% of revenue [2][3]. Business Segments - Digital Cost Business: This segment offers software products and data services to various stakeholders in construction projects, primarily through a SaaS model. Revenue from this segment grew from 2.452 billion in 2019 to 5.170 billion in 2023, reflecting a strong foundation for the company's growth [3]. - Digital Construction Business: Focused on the construction phase of projects, this segment has adapted its strategy to prioritize quality over scale, enhancing profitability and cash flow management. As the real estate market stabilizes, this segment is expected to recover [3]. Financial Forecast - The report forecasts net profits for 2024, 2025, and 2026 to be 504 million, 728 million, and 904 million respectively, with corresponding EPS of 0.30, 0.44, and 0.55. The current stock price corresponds to PE ratios of 44, 31, and 25 for the respective years [4][6].