CDG(SH:603018)2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company has shown initial success in digital transformation and has significant growth potential in the low-altitude economy [1]. - In 2023, the company achieved a revenue of 5.353 billion yuan, a decrease of 8.32% year-on-year, primarily due to a high proportion of survey design and EPC [1]. - The net profit attributable to shareholders was 0.698 billion yuan, representing a year-on-year increase of 3.18% [1]. - The company’s gross profit margin improved to 39%, an increase of 2.05 percentage points year-on-year, with a net profit margin of 13.33%, up 1.18 percentage points [1]. - New contracts signed in 2023 saw significant growth, particularly in the water conservancy and rail sectors, with year-on-year increases exceeding 30% [1]. Financial Performance Summary - Revenue by business segment for 2023: Survey design (0.484 billion yuan, +2.08%), Comprehensive testing (3.171 billion yuan, +7.72%), Digital and smart business (0.516 billion yuan, +32.30%), Low-carbon and environmental business (0.390 billion yuan, +17.83%), EPC (0.422 billion yuan, -22.31%) [1]. - The company’s operating cash flow improved slightly, with a net cash flow from operating activities of 0.499 billion yuan, an increase of 0.099 billion yuan from 2022 [1]. - The company forecasts revenues of 5.708 billion yuan, 6.100 billion yuan, and 6.546 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6.62%, 6.88%, and 7.30% [1]. Future Outlook - The company is expected to benefit significantly from the development opportunities in the low-altitude economy, leveraging its experience and technical expertise in planning and consulting for transport and general airports [1]. - The report anticipates net profits of 0.754 billion yuan, 0.839 billion yuan, and 0.924 billion yuan for 2024, 2025, and 2026, respectively, with corresponding year-on-year growth rates of 8.04%, 11.30%, and 10.16% [1].