ATCDI(SH:603357) Tianfeng Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.97 CNY, reflecting a potential upside of over 20% from the current price of 10.06 CNY [17][33]. Core Insights - The company achieved a revenue of 3.39 billion CNY in 2023, representing a year-on-year growth of 21.1%. The net profit attributable to the parent company was 488.29 million CNY, up 10.3% year-on-year, while the net profit excluding non-recurring items increased by 22.0% [33]. - The company has focused on digital transformation, enhancing operational efficiency and quality through a collaborative business platform [1][6]. - The company signed new contracts worth 4.582 billion CNY in 2023, a year-on-year increase of 13.8%, with significant growth in the engineering contracting segment [7][15]. Financial Performance - In Q4, the company reported a revenue of 1.35 billion CNY, a 25% increase year-on-year, with a gross margin improvement leading to a net profit of 114 million CNY, up 5.05% [33]. - The overall gross margin for the year improved by 2.07 percentage points to 33.85%, with Q4 gross margin at 27.7%, up 4.13 percentage points year-on-year [1][33]. - The company’s cash flow from operations was 273.32 million CNY in 2023, reflecting a decrease of 211 million CNY compared to the previous year [16][33]. Business Segments - Revenue from surveying and design, engineering management, and engineering contracting reached 2.08 billion CNY, 150 million CNY, and 1.15 billion CNY respectively, with year-on-year growth rates of 16.5%, 10.1%, and 31.3% [1][6]. - The company has established the first civil aviation design institute in the province, focusing on consulting services and surveying design in the civil aviation market, which is expected to drive future growth [7][15]. Market Outlook - The company is well-positioned to benefit from the low-altitude economy, with ongoing projects in the province expected to exceed 400 billion CNY in scale [7][15]. - The report anticipates continued growth in the company's business segments, particularly in low-altitude economic activities, supported by favorable government policies [7][15].