HOLSIN(SH:603909) Changjiang Securities·2025-06-20 11:12Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first recommendation [12]. Core Viewpoints - The company, benefiting from the resources of the Jianfa Group, is expected to see stable growth in performance due to strong domestic infrastructure demand and increased land acquisition by its major shareholder [4][10]. - The company focuses on six main business areas: surveying and design, engineering management, testing and inspection, construction, comprehensive maintenance, and engineering materials, leveraging Jianfa Group's resources to expand its construction business [7][22]. - The infrastructure investment in Fujian province is expected to maintain a steady growth trajectory, with significant projects planned for the upcoming years, providing a solid foundation for the company's future performance [8][83]. Summary by Relevant Sections Company Overview - The company was established in 1995 and transitioned to a state-owned enterprise in 2021 when Jianfa Group became the controlling shareholder. It has a strong focus on construction and design, with 86% of its revenue derived from construction activities [4][7][20]. Business Performance - The company has seen significant growth in new contracts, with new signed contracts increasing from 29.17 billion to 126.22 billion and then to 55.7 billion from 2022 to 2024, reflecting a year-on-year growth of 183%, 332.7%, and -55.87% respectively [47]. - Revenue has also increased significantly, with reported revenues of 12.61 billion, 39.46 billion, and 66.09 billion from 2022 to 2024, showing growth rates of 49.87%, 212.92%, and 67.49% respectively [47]. Market Outlook - Fujian province's infrastructure investment is projected to remain robust, with a target of 2 trillion yuan in total output by 2025, requiring an annual growth rate of approximately 7.41% to meet this goal [78]. - The company is well-positioned to benefit from the ongoing urban renewal initiatives, which emphasize a "health check before renewal" approach, aligning with its "engineering hospital" concept [45][83]. Financial Projections - The company is expected to achieve a net profit of 1.29 billion in 2025, with a current market valuation of 18.64 times earnings, indicating a favorable investment opportunity [10].