Core Viewpoint - The company, Pingming Technology Co., Ltd., has announced a stock suspension due to a significant matter that may lead to a change in control, with the suspension expected to last no more than two trading days. The announcement highlights the "significant uncertainty" surrounding the matter without disclosing details about the counterpart or specific plans [2]. Group 1: Company Performance - As of September 17, prior to the suspension, the company's market capitalization was 3.9 billion yuan, with a stock price of 49.38 yuan per share, which had risen by 8.01% on the last trading day, raising suspicions of information leakage [3][5]. - In the first half of 2025, the company reported a significant rebound in performance, achieving operating revenue of 187 million yuan and a net profit attributable to shareholders of 31.23 million yuan, marking a year-on-year increase of 270.11%. The non-recurring net profit reached 26.59 million yuan, up 706.69% year-on-year [4]. - The company's business is primarily divided into two segments: information software products and smart construction products. The information software segment generated 108 million yuan in revenue, accounting for 57.44% of total revenue, and has a gross margin close to 90%, significantly higher than the 56% gross margin of smart construction products [4]. Group 2: Cost Management - In the first half of 2025, the company successfully reduced its research and development, sales, and management expenses by 12.36 million yuan, a decrease of 9.18%. This was achieved through a talent optimization plan aimed at reducing labor costs [4]. Group 3: Dividend History - Since its listing in 2020, the company has implemented five cash dividend distributions, making it one of the few companies on the Sci-Tech Innovation Board to do so consistently. The most recent distribution plan for the first half of 2025 involves a cash dividend of 3.00 yuan per 10 shares, totaling 23.46 million yuan [7][8].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 15.48 CNY over the next six months [5]. Core Insights - The company is transitioning from building digitalization to urban digitalization, leveraging its CIM platform to support sustainable urban development and potentially unlocking greater growth opportunities [2][3]. - The company has released an industry white paper on AI applications in construction, providing actionable frameworks for the industry to adopt AI technologies [2][4]. - The company is recognized as a leader in the digital construction sector, with strong capabilities in software technology, industry insights, and innovation [4][11]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 6.3954 billion CNY, 6.683 billion CNY, and 6.9258 billion CNY respectively [13]. - Net profit forecasts for the same years are 484.6 million CNY, 620.9 million CNY, and 726.4 million CNY respectively [13]. - The company is expected to maintain a net profit margin of 7.6% in 2025, increasing to 10.5% by 2027 [13]. Market Performance - The company's stock price as of July 18, 2025, was 13.94 CNY, with a market capitalization of approximately 23.03 billion CNY [5]. - The stock has shown a 12-month absolute return of 33.8% [7]. Strategic Developments - The company has launched the CIM 4.0 platform, which integrates GIS, BIM, IoT, and multi-source business data to enhance urban digital operations [3]. - The focus on AI applications aims to improve design efficiency, cost estimation, and construction automation, thereby enhancing overall project execution [4][10].

Core Viewpoint - The construction industry is facing significant challenges in 2024, leading to adjustments in the business strategies of companies like Glodon, which has been actively seeking structural opportunities in various sectors such as urban renewal, water conservancy, new energy, municipal pipelines, and smart transportation [1][2][8]. Financial Performance - In 2024, Glodon reported total revenue of 6.24 billion yuan, a year-on-year decrease of 4.88%, while net profit attributable to shareholders was 250 million yuan, showing a significant increase of 116.19% [2][4]. - For Q1 2024, the company achieved revenue of 1.219 billion yuan, down 5.24% year-on-year, but net profit rose to 29.84 million yuan, up 390.89% [2][4]. Business Segments - In 2024, the gross profit margin for the digital design segment was 95.7%, while the digital construction segment saw a decline from 54% in 2022 to 35.9% in 2024. The digital cost segment improved its margin from 91.2% in 2022 to 93.4% in 2024 [4][6]. - The digital cost business accounted for 80.39% of total revenue in 2024, while digital construction and digital design contributed 12.69% and 1.45%, respectively [4][6]. Strategic Adjustments - Glodon has made proactive adjustments in organizational structure, key regions, and market strategies to adapt to market changes, focusing on more refined management and customer engagement [2][7]. - The company is leveraging AI technology across its product offerings, integrating nearly 100 software systems to eliminate data silos and enhance operational efficiency [10][12]. Market Expansion - Glodon has been expanding into sectors beyond traditional construction, such as water conservancy and new energy, achieving positive results through collaboration with industry design institutes [7][8]. - The company has also been actively entering overseas markets, establishing subsidiaries in Southeast Asia and Europe, and has plans to launch its digital design software in Germany [8][9]. Future Outlook - The company anticipates new opportunities arising from policies in the digital cost business and aims to improve operational quality in digital construction [6][8]. - Glodon has set ambitious performance targets in its 2025 stock option incentive plan, aiming for a net profit of 563 million yuan and a growth rate of no less than 30% in 2026 [9].