Investment Rating - The report maintains an "Outperform" rating for the company with a target price raised to 18.45 RMB, reflecting a significant increase from the previous target of 10.95 RMB [1][8]. Core Insights - The company demonstrates steady operational performance with a strong order backlog, transitioning its new business from an investment phase to a harvest phase by 2025. Projected revenues for 2025-2027 are 7.42 billion RMB, 8.03 billion RMB, and 8.78 billion RMB, respectively, with net profits attributable to shareholders expected to be 241 million RMB, 316 million RMB, and 376 million RMB [1][8]. - In 2024, the company achieved a revenue of 6.90 billion RMB, reflecting a growth of 4.5%, while net profit attributable to shareholders was 124 million RMB, a decline of 42.81% primarily due to increased investments in new business and asset impairments. However, Q1 2025 showed a revenue of 1.65 billion RMB, up 0.76%, and a net profit of 72 million RMB, up 271.83% [1][8]. - The traditional business remains stable, while new business initiatives are seen as a second growth curve, focusing on consulting and industry solutions in sectors like digital agriculture and smarter energy [1][8]. Financial Summary - Revenue projections for 2025-2027 are 7.42 billion RMB, 8.03 billion RMB, and 8.78 billion RMB, with net profits of 241 million RMB, 316 million RMB, and 376 million RMB, respectively. The earnings per share (EPS) are expected to be 0.41 RMB, 0.54 RMB, and 0.64 RMB for the same period [3][5]. - The company reported a significant increase in new contracts, with a total contract value exceeding 810 million RMB in 2024 and new contracts worth approximately 150 million RMB in Q1 2025 [1][8]. - The financial metrics indicate a projected net profit margin improvement, with net profit margins expected to rise from 1.8% in 2024 to 4.2% by 2027 [5][8].

Investment Rating - The report maintains an "Outperform" rating for the company with a target price raised to 18.45 RMB, reflecting a significant increase from the previous target of 10.95 RMB [1][8]. Core Insights - The company demonstrates steady operational performance with a strong order backlog, transitioning its new business from an investment phase to a harvest phase by 2025. Projected revenues for 2025-2027 are 7.42 billion RMB, 8.03 billion RMB, and 8.78 billion RMB respectively, with net profits attributable to shareholders expected to be 241 million RMB, 316 million RMB, and 376 million RMB [1][8]. - In 2024, the company achieved a revenue of 6.90 billion RMB, marking a 4.5% increase, while net profit attributable to shareholders was 124 million RMB, a decrease of 42.81% primarily due to increased investments in new business and asset impairment [1][8]. - The first quarter of 2025 saw a revenue of 1.65 billion RMB, a 0.76% increase, and a net profit of 72 million RMB, a substantial increase of 271.83%, driven by exchange rate gains and increased fiscal subsidies [1][8]. Financial Summary - Revenue projections for 2025, 2026, and 2027 are 7.42 billion RMB, 8.03 billion RMB, and 8.78 billion RMB respectively, with net profits of 241 million RMB, 316 million RMB, and 376 million RMB [3][5]. - The earnings per share (EPS) are forecasted to be 0.41 RMB, 0.54 RMB, and 0.64 RMB for 2025, 2026, and 2027 respectively [3][5]. - The company’s net asset return rate is expected to improve from 3.0% in 2024 to 7.3% by 2027 [3][5]. Business Development - The company is focusing on expanding its new business lines, particularly in digital agriculture and smart energy, while maintaining stability in its traditional business [1][8]. - In digital agriculture, the company is developing a comprehensive technology system that includes smart farming and fisheries, winning several key projects in 2024 [1][8]. - The company is also enhancing its ecosystem partnerships with major cloud providers like Alibaba Cloud and Tencent Cloud to accelerate AI applications in various industries [1][8].