CDG(SH:603018) Tianfeng Securities·2025-04-10 14:44Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [6][18]. Core Views - The traditional business continues to face pressure, but the company is expected to benefit from the low-altitude economy, which may catalyze performance recovery [1][4]. - The company reported a significant decline in revenue and net profit for 2024, with revenue at 4.428 billion yuan, down 17.28% year-on-year, and net profit at 382.63 million yuan, down 45.17% year-on-year [1][5]. - The company is focusing on diversifying its business, particularly in digitalization and low-carbon environmental sectors, which are expected to drive future growth [1][4]. Financial Performance Summary - In 2024, the company's revenue from traditional business segments such as planning research, surveying and design, comprehensive testing, and project management showed declines, with revenue of 4.2 billion yuan (-14.2%), 23.5 billion yuan (-25.9%), 4.9 billion yuan (-5.2%), and 2.5 billion yuan (-20.6%) respectively [2]. - The comprehensive gross margin for 2024 was 37.2%, a decrease of 1.8 percentage points year-on-year, while the net profit margin fell to 8.9%, down 4.5 percentage points year-on-year [3]. - The company expects a gradual recovery in net profit, projecting 4.2 billion yuan in 2025, 4.7 billion yuan in 2026, and 5.3 billion yuan in 2027, representing year-on-year growth rates of 10.9%, 11.4%, and 12.4% respectively [4][5]. Business Segments Overview - The traditional business segments experienced revenue declines, while emerging businesses like digital intelligence and low-carbon environmental services showed growth, with revenues of 4.2 billion yuan (+7.8%) and 4.3 billion yuan (+2.1%) respectively [2]. - The low-altitude economy segment saw a significant increase in new orders, with a year-on-year growth of 96% [2]. Valuation Metrics - The company’s earnings per share (EPS) for 2024 is projected at 0.56 yuan, with a price-to-earnings (P/E) ratio of 13.31 [5][6]. - The projected price-to-book (P/B) ratio for 2024 is 0.98, indicating a potential undervaluation compared to its book value [5][6].