CDG(SH:603018) Guotai Junan Securities·2024-03-07 16:00Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price of 13.10 CNY, which corresponds to a PE ratio of 11.3 times for 2024 [12][14]. Core Views - The company's net profit growth improved sequentially in Q4, and it continues to enhance its digitalization and intelligence levels. The company is expected to benefit from the issuance of ultra-long special government bonds and the construction of key national projects in the future [12][14]. - The 2023 annual performance report indicates a net profit attributable to shareholders of 7.04 billion CNY, representing a 2.9% year-on-year increase, with Q4 showing a 4.9% sequential growth [12][14]. - The company aims to reshape its business system and innovate its business model, focusing on quality improvement and efficiency enhancement [12][14]. Summary by Sections Financial Performance - The company's 2023 EPS is projected to be 1.03 CNY, an increase of 3%, with a forecasted EPS of 1.16 CNY and 1.25 CNY for 2024 and 2025, respectively [12][14]. - The expected revenue for 2023 is 55.3 billion CNY, a year-on-year decrease of 5.3% [12][14]. - The report highlights a significant improvement in the company's quarterly performance growth, with a focus on digital and intelligent solutions in the transportation and urban construction sectors [12][14]. Market Position - The company is positioned as a leading digital solution provider in the transportation and urban construction sectors, benefiting from its innovative capabilities [12][14]. - The report notes that the company has participated in major national engineering projects and is expected to benefit from the continuous issuance of ultra-long special government bonds in the coming years [12][14]. Valuation Metrics - The report provides a valuation overview, indicating a market capitalization of 4.855 billion CNY and a 52-week price range of 6.19 to 11.63 CNY [12][14]. - The company's financial metrics, including a PE ratio of 7.85 and a PB ratio of 1.22, suggest a favorable valuation compared to historical averages [12][14].