HENGTONG TECH.(SZ:300374) EBSCN·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [12]. Core Views - The company is expected to benefit from the acceleration of affordable housing construction, with the assembly-type building industry poised for growth due to supportive government policies [7][16]. - The company has seen significant improvements in its operating conditions, with a substantial increase in orders and revenue, and a reduction in net losses [16]. Summary by Relevant Sections Company Overview - China Railway Assembly is the only high-tech innovative assembly building business platform under China Railway, leading in the supply and integration of assembly building components [1]. Financial Performance - In 2023, the company achieved new signed orders of approximately 5 billion yuan, a year-on-year increase of 60%, and revenue growth of 130% year-on-year [1]. - The company reported a net loss attributable to shareholders of 150 million to 200 million yuan, a reduction in loss of 23.08% to 42.31% year-on-year [1]. Market Trends - The assembly-type building industry is expected to expand as the government promotes affordable housing, with policies encouraging the use of assembly construction techniques [7][15]. - The standardization and industrialization of the assembly-type building sector are anticipated to improve cost efficiency and increase market penetration [15]. Profit Forecast and Valuation - The profit forecast for 2023-2024 has been adjusted to a net loss of 196 million yuan for 2023 and a profit of 20 million yuan for 2024, with a new forecast for 2025 showing a profit of 48 million yuan [16]. - The current price corresponds to a dynamic P/E ratio of 181x for 2024 [16].