Soochow Securities·2025-04-30 06:25Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - In Q1 2025, the company achieved a revenue of 6.734 billion yuan, a year-on-year increase of 2.84%, while the net profit attributable to shareholders was 562 million yuan, a year-on-year decrease of 7.08% [2] - The company has seen significant growth in new contracts, particularly in the railway and urban rail sectors, with new contracts totaling 7.213 billion yuan, a year-on-year decrease of 36.51% [3] - The company is accelerating its exit from low-margin engineering contracting business, focusing on its core operations, which is expected to enhance operational efficiency [5] Revenue and Profitability - The company's revenue for Q1 2025 was driven by growth in urban rail and overseas business, with urban rail revenue increasing by 21.66% year-on-year [2] - The gross margin for Q1 2025 was 27.23%, a slight decrease of 0.18 percentage points year-on-year, while the net profit margin was 9.74%, down 1.21 percentage points year-on-year [4] Business Segments - The railway business generated revenue of 3.414 billion yuan, a year-on-year decrease of 4.05%, while the urban rail business generated 1.965 billion yuan, reflecting strong growth [2] - The overseas business saw a revenue increase of 66.91% year-on-year, indicating successful international expansion [2] Future Outlook - The company is focusing on the low-altitude economy as a new growth curve, with developments in low-altitude airspace management systems and participation in industry standards [5] - The profit forecasts for 2025-2027 are set at 3.905 billion yuan, 4.305 billion yuan, and 4.717 billion yuan respectively, with corresponding P/E ratios decreasing from 15 to 12 [10]