SESPACE(SZ:002135) Tianfeng Securities·2025-05-22 12:45Investment Rating - The report adjusts the investment rating to "Accumulate" [4][6] Core Views - The company is expected to face short-term pressure on revenue and profit, with a projected revenue of 11.24 billion in 2024, down 13.49% year-on-year, and a net profit of 190 million, down 41.64% year-on-year [1][5] - The engineering contracting business is growing rapidly, with a revenue increase of 47.80% in 2024, driven by a dual-engine development strategy focusing on "EPC contracting + No. 1 project" and expansion into overseas markets [2][3] - The company is actively expanding its photovoltaic operations, including a significant project in Xiaoshan, which is expected to enhance its profitability and market presence in the renewable energy sector [4][5] Financial Performance Summary - In Q1 2024, the company reported a revenue of 2.437 billion, a decrease of 18.94% year-on-year, and a net profit of 47 million, down 47.44% year-on-year [1] - The overall cash flow remains strong, with a cash flow from operations (CFO) of 1.088 billion in 2024, an increase of 2.682 billion year-on-year, attributed to good collections from engineering and overseas businesses [3] - The company’s comprehensive gross margin for 2024 is projected at 10.3%, a decrease of 0.95 percentage points year-on-year, while the gross margin for Q4 2024 is expected to be 19.82%, an increase of 7.81 percentage points year-on-year [2][3]