CRSC(SH:688009) Soochow Securities·2025-03-31 13:04Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In 2024, the company's revenue is projected to decline by 11.98% to 32.644 billion yuan, while net profit is expected to slightly increase by 0.50% to 3.495 billion yuan, indicating a shift in business structure and a focus on optimizing operations [2][12] - The company is accelerating its exit from low-margin municipal engineering contracting, which has led to a significant drop in related revenue, while overseas business has shown remarkable growth with a 64.20% increase in revenue [2][7] - The gross margin improved to 29.22% in 2024, up by 3.46 percentage points year-on-year, driven by the exit from low-margin projects and ongoing cost reduction efforts [4][12] Revenue and Profit Analysis - In 2024, the railway sector generated revenue of 18.890 billion yuan, down 1.86%, while the urban rail sector saw revenue of 8.220 billion yuan, down 3.58%. In contrast, overseas revenue reached 2.441 billion yuan, marking a 64.20% increase [2] - The company's net cash flow from operating activities improved significantly, reaching 5.236 billion yuan, up 154.42% year-on-year, indicating better cash collection [6] Margin and Cost Structure - The company's selling net profit margin increased to 12.53% in 2024, up by 1.68 percentage points year-on-year, reflecting improved operational efficiency [4] - The research and development expense ratio rose to 5.86%, indicating a commitment to innovation and technology enhancement [5] Future Outlook - The company is expected to focus on its core business while expanding its overseas operations, which are anticipated to become a new growth driver [7][12] - The projected net profit for 2025 is 3.905 billion yuan, with a growth rate of 11.75%, and for 2026, it is expected to reach 4.305 billion yuan, with a growth rate of 10.25% [12]