CAPOL(SZ:002949) GF SECURITIES·2024-05-06 05:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16.06 CNY per share based on a 17x PE valuation for 2024 [2][23]. Core Views - The company is expected to continue developing its BIM design platform and accelerate the integration of AI technology into the design process. Projected net profits for 2024, 2025, and 2026 are 185 million, 221 million, and 259 million CNY, respectively [2][18]. - The company has shown significant improvement in profitability and stable cash flow, with a net operating cash inflow of 287 million CNY in 2023. The gross margin, net margin, and ROE for 2023 were 32.22%, 12.56%, and 10.57%, respectively, reflecting year-on-year increases [3][10]. Financial Summary - The company's revenue for 2023 was 1.507 billion CNY, a decrease of 17.46% year-on-year, while net profit increased by 43.82% to 161 million CNY. The company reduced asset impairment provisions compared to 2022 [21][28]. - The projected revenue for 2024 is expected to be 1.505 billion CNY, with a slight decline of 0.1%, followed by growth rates of 11.5% and 15.2% in 2025 and 2026, respectively [4][60]. - The company’s EBITDA for 2023 was 313 million CNY, with a projected increase to 314 million CNY in 2024 [4][60]. Business Segmentation - The architectural design segment saw new orders of 1.554 billion CNY in 2023, a year-on-year increase of 2.46%, while revenue from this segment was 1.117 billion CNY, down 9.07% [22][35]. - The assembly design orders increased significantly, accounting for 56.49% of the architectural design contracts, with a year-on-year growth of 42.85% [22][35]. - The cost consulting segment experienced a decline in new orders and revenue, with new orders of 164 million CNY, down 22.63% year-on-year [22][35].