CAPOL(SZ:002949) Haitong Securities·2024-04-08 16:00Investment Rating - The investment rating for Huayang International is "Outperform the Market" [19]. Core Views - The company reported a significant recovery in net profit for Q4, with a year-on-year increase of 43.82% to 161 million yuan, despite a 17.46% decrease in operating revenue to 1.507 billion yuan [9][21]. - The gross margin improved by 3.01 percentage points to 32.22%, and the net margin increased by 4.64 percentage points to 12.56% in 2023 [13]. - The company is focusing on enhancing its BIM software capabilities and has established a joint venture for domestic BIM software development [22]. Financial Performance Summary - In 2023, the total operating revenue was 1.507 billion yuan, down 17.5% year-on-year, while net profit was 161 million yuan, up 43.8% [23]. - The earnings per share (EPS) for 2023 was 0.82 yuan, with projections of 0.97 yuan for 2024 and 1.12 yuan for 2025 [16]. - The company plans to distribute at least 40% of its distributable profits as cash dividends from 2024 to 2026, with an expected cash dividend of 157 million yuan for 2023 [22]. Industry Analysis - The construction engineering industry is experiencing a recovery, with Huayang International benefiting from increased demand for its design services and enhanced operational efficiency [21]. - The company is expected to maintain steady growth due to its focus on BIM technology and the increasing concentration of downstream clients [14].