GLODON(002410)2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1] Core Views - The company's revenue for 2023 was 6.53 billion RMB, a slight decrease of 0.4% year-on-year, while the net profit attributable to shareholders dropped significantly by 88.0% to 120 million RMB, primarily due to increased labor costs, depreciation, and asset impairment [3][4] - The digital cost management segment remains stable, with strong growth momentum from new digital cost products, achieving cloud revenue of 600 million RMB, a year-on-year increase of 52.4% [3][4] - The construction business has been optimized, focusing on profitability and cash flow management, resulting in improved sales collection compared to 2022 [3][4] Summary by Sections Financial Performance - The company reported total revenue of 6.53 billion RMB in 2023, with a projected revenue increase to 8.09 billion RMB in 2024, reflecting a growth rate of 24.0% [4][6] - The net profit for 2023 was 120 million RMB, with forecasts of 1.02 billion RMB for 2024, indicating a substantial recovery [4][6] - The earnings per share (EPS) for 2023 was 0.07 RMB, expected to rise to 0.61 RMB in 2024 [4][6] Business Segments - The digital construction business generated 860 million RMB in revenue for 2023, a decrease of 35.0% due to fewer construction projects starting [3][4] - The overseas business segment saw a revenue increase of 26.4% to 194 million RMB, driven by the acquisition of EQUA Simulation AB [3][4] Valuation - The projected net profits for 2024, 2025, and 2026 are 1.02 billion RMB, 1.29 billion RMB, and 1.56 billion RMB respectively, with corresponding PE ratios of 20.5X, 16.2X, and 13.4X [4][6][7] - The company maintains a strong digital cost management foundation, with robust growth potential from new digital products, justifying the "Buy" rating [3][4]