HOLSIN(SH:603909) KAIYUAN SECURITIES·2025-03-24 06:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced significant year-on-year growth in revenue and net profit, primarily driven by a substantial increase in construction business, although the rising proportion of this segment has diluted the gross margin [5][6] - The overall business performance remains stable, and the company is expected to continue benefiting from synergies with its controlling shareholder, which may drive sustained revenue growth [5] Financial Performance Summary - In 2024, the company achieved total operating revenue of 6.609 billion yuan, representing a year-on-year increase of 67.49% - The net profit attributable to the parent company was 0.96 billion yuan, up 45.03% year-on-year, while the net profit excluding non-recurring items was 0.90 billion yuan, reflecting a 42.06% increase [6] - The gross margin was reported at 5.95%, with a net margin of 1.86%, showing declines of 2.19 percentage points and 0.17 percentage points respectively, mainly due to the lower margin of the construction business [6] - As of the end of 2024, the net cash flow from operating activities was 0.471 billion yuan, an increase of 5.69% year-on-year [6] Business Segment Performance - The construction business generated revenue of 5.698 billion yuan in 2024, a 90.51% increase, accounting for 86.21% of total revenue - The design consulting business saw revenue of 0.402 billion yuan, a decrease of 2.57%, contributing 6.08% to total revenue - The reinforcement business reported revenue of 0.211 billion yuan, a slight increase of 0.56%, making up 3.20% of total revenue - Despite a slowdown in industry growth, the engineering consulting segment maintained growth, with new contracts signed amounting to 0.995 billion yuan, a 0.4% increase year-on-year [7] Financial Forecasts - The company forecasts net profits attributable to the parent company for 2025, 2026, and 2027 to be 1.1 billion yuan, 1.3 billion yuan, and 1.3 billion yuan respectively, with corresponding EPS of 0.4 yuan, 0.5 yuan, and 0.5 yuan - The current stock price corresponds to P/E ratios of 23.3, 19.5, and 19.4 for the years 2025, 2026, and 2027 respectively [5][8]