Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 44.46 [1][6]. Core Insights - In Q1 2025, the company reported a slight decline in revenue of 2.53% year-on-year, totaling 173 million yuan, while net profit increased by 13.12% to 26 million yuan. The growth in profit is attributed to cost reduction and efficiency improvements [4][5]. - The company is expanding its overseas business, establishing subsidiaries in Hong Kong and Australia, which is expected to accelerate its international presence. Additionally, favorable policies in the healthcare sector may lead to a recovery in the domestic clinical CRO industry [6][5]. - The company forecasts revenue growth from 777 million yuan in 2025 to 966 million yuan in 2027, with corresponding net profits expected to rise from 147 million yuan to 181 million yuan during the same period [7][6]. Summary by Sections Financial Performance - Q1 2025 revenue was 173 million yuan, down 2.53% year-on-year, while net profit was 26 million yuan, up 13.12%. The adjusted net profit was 20 million yuan, reflecting a 23.26% increase [4][5]. - The company's expense ratios improved, with management expenses decreasing by 4.06 percentage points to 11.58%, and sales expenses down by 0.08 percentage points to 1.88%. The gross margin was 36.53%, a decrease of 1.31 percentage points year-on-year, while the net margin increased by 1.99 percentage points to 15.28% [5][6]. Business Outlook - The company is expected to maintain steady growth in its SMO business, while its statistical business remains stable. However, clinical and testing services have seen a decline [5]. - The revenue projections for 2025 to 2027 indicate a compound annual growth rate (CAGR) of 4.42%, 9.53%, and 13.47%, respectively, with net profit growth rates of 4.58%, 9.72%, and 12.46% [6][7]. Valuation Metrics - The projected price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 30, 27, and 24, respectively, indicating a favorable valuation outlook as the company grows [6][7].

Core Viewpoint - The company reported a slight increase in revenue for 2024, but a significant decline in net profit, indicating challenges in profitability despite stable revenue growth in certain segments [2][3]. Group 1: Financial Performance - In 2024, the company achieved revenue of 342 billion, with a net profit attributable to shareholders of 24 billion, and a net profit excluding non-recurring items of 18 billion, reflecting a year-on-year change of +1%, -13%, and -23% respectively [2]. - For Q4 2024, the company reported revenue of 95 billion, net profit of 13 billion, and net profit excluding non-recurring items of 7.2 billion, showing a year-on-year change of -1%, +44%, and +45% respectively [2]. Group 2: Cement Business - The cement business generated revenue of 180 billion in 2024, down 2% year-on-year, with sales volume of 57 million tons, also down 2% [3]. - The average selling price for cement was 316 yuan/ton, up 0.4% year-on-year, while the operating cost per ton increased to 241 yuan, up 4% year-on-year, leading to a decrease in gross profit margin [3]. Group 3: Concrete and Aggregate Business - The concrete business saw revenue growth of 10% year-on-year, reaching 84 billion, with sales volume increasing by 17% to 31.81 million cubic meters [4]. - The aggregate business achieved revenue of 56 billion, up 5% year-on-year, with sales volume of 14.3 million tons, reflecting a 9% increase [4]. Group 4: International Business - The overseas business reported a significant revenue increase of 47% year-on-year, totaling 80 billion, with cement sales volume reaching 16.2 million tons, up 37% [5][6]. - The company has expanded its international footprint, covering 16 countries and signing projects in Nigeria and Brazil [6]. Group 5: Capacity and Future Goals - As of the end of 2024, the company had a cement production capacity of 126 million tons per year, ranking fourth globally in clinker capacity among Chinese cement companies [7]. - For 2025, the company aims for a revenue increase to 371 billion, with capital expenditures projected at 133 billion, focusing on aggregate and overseas cement capacity expansion [8].