CDG(SH:603018) Tianfeng Securities·2024-11-01 08:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [6][13]. Core Insights - The company achieved a revenue of 2.692 billion yuan in the first three quarters of 2024, a year-on-year decrease of 15.66%, with a net profit attributable to shareholders of 232 million yuan, down 33.78% year-on-year. However, Q3 saw a revenue increase of 8.18% year-on-year, indicating a positive trend despite overall performance pressure due to rising costs and increased impairment losses [1][2]. - The company is focusing on diversifying its business, particularly in digitalization and low-carbon environmental sectors, while also participating in several domestic civil aviation airport expansion projects, positioning itself to benefit from the low-altitude economy [1][3]. - The gross profit margin for the first three quarters of 2024 was 37.2%, an increase of 0.38 percentage points year-on-year, with Q3 gross profit margin at 38.44%, up 1.65 percentage points year-on-year [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported a net profit margin of 8.48%, down 2.83 percentage points year-on-year. The cash flow from operations (CFO) showed a net outflow of 612 million yuan, which is an increase in outflow of 163 million yuan year-on-year, but the Q3 net outflow narrowed by 213 million yuan year-on-year [2][8]. - The company has projected net profits of 500 million yuan, 540 million yuan, and 600 million yuan for 2024, 2025, and 2026 respectively, with expected year-on-year changes of -28.8%, +9.4%, and +10.4% [4][5]. Business Opportunities - The company is involved in significant waterway investments, particularly the Jiangxi section of the Zhejiang-Jiangxi-Guangdong Canal, which is expected to have a total investment of 320 billion yuan and is projected to be completed by 2030. The company has successfully participated in the feasibility study for the Gan-Guang Canal project, marking progress in the water transport sector [3]. - In the low-altitude economy sector, the company has established a comprehensive business model that includes industry planning, policy research, and the development of drone applications, positioning itself well for future growth [3].