Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4]. Core Views - The company's traditional business is under pressure, leading to short-term performance challenges, with a reported revenue of 4.428 billion yuan in 2024, down 17.28% year-on-year, and a net profit of 383 million yuan, down 45.17% year-on-year [1]. - Despite the challenges in traditional sectors, the company is successfully transitioning towards digitalization and low-altitude economy, with new business revenues reaching 1.38 billion yuan, accounting for 31.10% of total revenue, up from 25.56% in 2023 [2]. - The company has seen significant growth in its low-altitude economy segment, with orders increasing by 96% in 2024, supported by the establishment of a dedicated low-altitude technology company and the development of proprietary software [2]. Financial Performance Summary - In 2024, the company reported a revenue of 4.428 billion yuan, a decrease of 17.28% year-on-year, and a net profit of 383 million yuan, down 45.17% year-on-year [1]. - The gross profit margin for 2024 was 37.22%, a decline of 1.78 percentage points compared to the previous year [1]. - The company’s financial forecast estimates revenues of 4.499 billion yuan, 4.671 billion yuan, and 4.903 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 448 million yuan, 497 million yuan, and 538 million yuan for the same years [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4]. Core Views - The company's traditional business is under pressure, leading to short-term performance challenges, with a significant decline in revenue and net profit in 2024 [1][3]. - However, the company is successfully transitioning towards digitalization and low-altitude economy sectors, which are showing promising growth [2]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 4.428 billion yuan, a year-on-year decrease of 17.28%. The net profit attributable to shareholders was 383 million yuan, down 45.17% year-on-year [1]. - For Q1 2025, revenue was 675 million yuan, a decline of 14.55% year-on-year, with a net profit of 58 million yuan, down 37.68% [1]. - The gross profit margin for 2024 was 37.22%, a decrease of 1.78 percentage points compared to the previous year [1]. Business Transformation - The company is advancing its digital strategy, with new business segments such as digital intelligence and green low-carbon initiatives generating 1.38 billion yuan in revenue, increasing their share of total revenue from 25.56% in 2023 to 31.10% in 2024 [2]. - The low-altitude economy segment has seen a remarkable order growth of 96% in 2024, with over 20 product lines developed and projects undertaken in more than 40 cities across the country [2]. Cost Management - The company's expense ratio was 19.26%, an increase of 0.90 percentage points year-on-year, with specific increases in sales and management expenses [3]. - Impairment losses significantly impacted profits, amounting to 320 million yuan, which accounted for 7.32% of total revenue, an increase of 1.87 percentage points year-on-year [3]. Future Outlook - The company is expected to benefit from the growth in the low-altitude economy, with projected revenues of 4.499 billion yuan, 4.671 billion yuan, and 4.903 billion yuan for 2025, 2026, and 2027 respectively [4]. - The net profit attributable to shareholders is forecasted to be 448 million yuan, 497 million yuan, and 538 million yuan for the same years, with corresponding EPS of 0.65 yuan, 0.73 yuan, and 0.79 yuan [4].