CGT GROUP(SZ:000066) Tai Ping Yang·2024-05-09 07:30Investment Rating - The report maintains a "Buy" rating for China Great Wall (000066) with a target price based on the last closing price of 9.46 [1][4]. Core Views - The company has shown signs of revenue recovery, with a 21.13% year-on-year increase in Q1 2024 revenue, amounting to 2.663 billion yuan, compared to a 4.33% decrease in 2023 [4][5]. - The overall gross margin for the company is reported at 21.62%, which is a decline of 3.59 percentage points from the previous year [4]. - The company is focusing on enhancing its technological research and development capabilities, with a research and development expense ratio of 10.15%, an increase of 0.73 percentage points year-on-year [4]. - The report anticipates growth in the domestic IT infrastructure market, driven by government initiatives aimed at promoting domestic technology adoption [4]. Financial Summary - In 2023, the company's total revenue was 13.42 billion yuan, a decrease of 4.33% year-on-year, while the net profit attributable to shareholders was -977.25 million yuan, a significant decline of 895.98% [4][5]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are expected to be 0.06 yuan, 0.12 yuan, and 0.16 yuan respectively [4][5]. - The company’s revenue is expected to grow by 25% in 2024, followed by 21% in 2025 and 20% in 2026 [5].