EIT(SZ:300815) HTSC·2025-05-05 15:25Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company reported a revenue of 7.203 billion RMB for 2024, representing a year-over-year increase of 16.93%, and a net profit attributable to the parent company of 575 million RMB, up 10.40% year-over-year, although below expectations due to higher management expenses and credit impairment [2][3] - The company continues to expand its contracts in the urban operation sector, with a total new contract amount of 8.34 billion RMB in 2024, and an annualized new contract amount of 2.071 billion RMB, reflecting a year-over-year increase of 43.10% [3] - The company is actively investing in the sanitation robot sector, aiming to enhance its smart sanitation ecosystem [4] Financial Performance - In 2024, the company's operating cash flow increased by 12.58% year-over-year to 369 million RMB, while the dividend per share (DPS) rose by 88% to 0.375 RMB [5] - The company’s management expenses reached 491 million RMB in 2024, up 21.62% year-over-year, and credit impairment was 131 million RMB, an increase of 36.39% [5] - The company’s revenue for Q1 2025 was 1.882 billion RMB, a year-over-year increase of 10.58%, with a net profit of 161 million RMB, up 9.20% year-over-year [2] Earnings Forecast - The earnings per share (EPS) for 2025-2027 are projected to be 1.65 RMB, 1.85 RMB, and 2.06 RMB respectively, with a downward adjustment of 11% and 15% for 2025 and 2026 [6] - The target price for the company is set at 23.60 RMB, based on a price-to-earnings (PE) ratio of 14.3 times for 2025 [6][9] Valuation Metrics - The company’s projected revenue for 2025 is 8.043 billion RMB, with a year-over-year growth rate of 11.66% [7] - The projected net profit for 2025 is 656 million RMB, reflecting a growth rate of 14.10% [7] - The company’s price-to-book (PB) ratio is expected to decrease from 1.74 in 2023 to 1.36 in 2025 [7]