Zhongyan Technology (SZ:003001) Guoxin Securities·2025-04-21 08:46Investment Rating - The report maintains an "Outperform the Market" rating for the company [6][20][24]. Core Insights - The company has achieved significant growth in profitability, with a 2024 revenue of 790 million yuan, a year-on-year decrease of 14.0%, and a net profit attributable to shareholders of 62 million yuan, reflecting a year-on-year increase of 226.3% [1][9]. - The company has successfully shifted its business focus from real estate to major national infrastructure projects such as nuclear power, hydropower, and ports, resulting in a substantial improvement in order structure and profitability [1][9]. - The gross margin for 2024 increased significantly to 24.9%, up 7.7 percentage points year-on-year, while the expense ratio decreased to 12.69%, down 0.85 percentage points year-on-year [1][13]. Financial Performance Summary - The company signed new contracts worth 1.019 billion yuan in 2024, a year-on-year increase of 49.3%, with a year-end backlog of 628 million yuan, up 1.4% year-on-year [1][9]. - The operating cash flow turned positive in 2024, with a net cash flow from operating activities of 44 million yuan, after three consecutive years of net outflow [2][17]. - The forecast for revenue from 2025 to 2027 is 1.38 billion yuan, 2.58 billion yuan, and 3.78 billion yuan, respectively, with net profits projected at 152 million yuan, 359 million yuan, and 651 million yuan, indicating growth rates of 143%, 137%, and 81% [20][22].