Investment Rating - The report maintains a "Buy" rating for the company with a target price of 24.50 CNY, based on a projected PE of 70 for 2024 [5][10]. Core Insights - The company achieved a revenue of 480 million CNY in 2023, representing a year-on-year growth of 9.2%, with a net profit of 40 million CNY, up 43.6% from the previous year [9][25]. - The gross margin improved to 45.5%, an increase of 3.4 percentage points year-on-year, while the net margin rose to 9.1%, up 2.2 percentage points [5][10]. - The company is benefiting from urban renewal initiatives driven by national policies, which are expected to create substantial demand in the planning and design sector [26]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 482.82 million CNY and a net profit of 44.06 million CNY, with an EPS of 0.27 CNY [25][27]. - For Q1 2024, the company recorded a revenue of 90 million CNY, a slight decline of 0.2% year-on-year, and a net profit of 3 million CNY, down 8.4% [9][25]. Profit Forecast and Valuation - The forecast for net profit from 2024 to 2026 is 56.48 million CNY, 62.77 million CNY, and 67.25 million CNY, with corresponding PE ratios of 58, 52, and 49 [10][27]. - The report anticipates steady growth in the planning and engineering design sectors, with expected growth rates of 10% annually from 2024 to 2026 [12][30]. Business Strategy - The company is expanding its urban operation and smart city initiatives, aiming to leverage opportunities in the second phase of urbanization in China [26][30]. - The report highlights the company's strategic focus on enhancing its planning and engineering design capabilities while exploring new business avenues in smart city investments [30][26].
2023年年报点评：经营稳中求进，受益于城市更新