CAPOL(SZ:002949) Tianfeng Securities·2025-08-27 07:15Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][17] Core Views - The company's revenue for the first half of 2025 reached 600 million, a year-on-year increase of 15.6%, while the net profit attributable to the parent company was 35 million, down 41% year-on-year. The revenue growth is steady, but performance is under pressure mainly due to losses from new businesses and increased impairment losses [1][2] - The company has adjusted its business strategy by transferring 100% equity of subsidiaries in Jiangxi, Shenzhen, and Hunan, which is expected to reduce losses in the digital culture business in the second half of the year [1][2] - The company expects net profits attributable to the parent company for 2025-2027 to be 106 million, 140 million, and 160 million respectively, with corresponding P/E ratios of 27, 21, and 18 [1] Financial Performance - The gross margin for the company's construction design business improved by 7.85 percentage points year-on-year to 38.54% in the first half of 2025, despite a slight decline in overall gross margin to 24.6% [2][4] - The company reported a cash flow from operations (CFO) net outflow of 183 million in the first half of 2025, which is an increase in outflow by 59 million year-on-year [4] - The company's total revenue for 2023 is projected at 1,506.75 million, with a growth rate of -17.46%, and the net profit attributable to the parent company is expected to be 161.33 million, reflecting a growth rate of 43.82% [5][11] Regional Performance - In the first half of 2025, the company generated 410 million in revenue from the South China region, a decrease of 2.3% year-on-year, while the East China and Southwest regions saw significant growth of 280% and 35% respectively [3]