GLODON(SZ:002410) Ping An Securities·2024-04-25 10:00Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting the stock to outperform the market by more than 20% within the next six months [2][15]. Core Views - The company's revenue slightly declined year-on-year, but there is optimism regarding the future development of its digital new cost business [2][6]. - The first quarter of 2024 saw total revenue of 1.3 billion yuan, a decrease of 0.93% year-on-year, and a net profit attributable to shareholders of 6.08 million yuan, down 94.92% year-on-year [4][6]. - The increase in sales and administrative expenses significantly impacted net profit, with the expense ratio rising by 6.59% year-on-year [6]. Summary by Sections Financial Performance - In 2024, the company is projected to achieve revenues of 7.045 billion yuan, with a year-on-year growth of 7.3% [5]. - The net profit for 2024 is estimated at 491 million yuan, reflecting a substantial increase of 254.6% compared to 2023 [5][12]. - The gross margin is expected to remain stable around 82.3% to 82.1% over the next few years [5][12]. Business Segments - The core cost estimation business remains stable, with cloud revenue reaching 3.224 billion yuan in 2023, a growth of 11.2% [6]. - The digital new cost products achieved cloud revenue of 598 million yuan in 2023, marking a significant growth of 52.36% [6]. - The digital construction business faced challenges, with a revenue decline of 35% in 2023, but sales collections improved [8]. Future Outlook - The company is expected to recover and grow in the digital construction sector as the industry undergoes digital transformation [8]. - The long-term growth potential of the digital new cost business is highlighted as a key driver for future performance [6][8]. - The company has made strategic adjustments to enhance operational quality and cash flow management, which may lead to improved profitability in the coming years [8].