Investment Rating - The report maintains a "Recommended" rating for the company [6][8]. Core Insights - The company's core business is steadily developing, with significant performance improvement expected in 2024. The digital cost business is evolving from single-position tools to comprehensive cost application scenarios, while the gross profit margin is rising and expenses are being optimized, leading to a rapid recovery in net profit [3][15]. - Policies are expected to boost downstream market conditions, with the SaaS leader poised to embark on a new growth journey. The support for the real estate market is anticipated to enhance downstream information technology spending [4][21]. - The company is comprehensively laying out AI models and applications, integrating deep industry understanding with intelligent technology. The AI capabilities are expected to significantly enhance operational efficiency and decision-making accuracy [5][30]. Summary by Sections 1. Core Business Development and Performance Improvement - The digital cost business is transitioning to full-process applications, with stable renewal and application rates for traditional cost tools. The number of application projects in the digital design business has increased to 1,440 [3][13]. - The company expects a net profit of 250 million yuan in 2024, a year-on-year increase of 116.19%, with a non-recurring net profit of 174 million yuan, up 219.92% [15][39]. 2. Policy Support and SaaS Business Growth - In September 2024, the People's Bank of China and the National Financial Regulatory Administration introduced four financial support policies for real estate, which are expected to stabilize the market [21][22]. - The company's SaaS business maintains a gross profit margin above 90%, with improvements in the construction business gross margin expected in 2024 [24][23]. 3. AI Model and Application Integration - The company has launched the AecGPT AI model and various specialized models covering seven fields, enhancing efficiency in construction project management [5][30]. - AI capabilities have improved the accuracy of cost estimation products to approximately 70%, and the efficiency of design solutions has increased by 50% [36][32]. 4. Investment Recommendations - The company is recognized as a leading digital construction platform service provider, with a projected net profit of 450 million yuan in 2025, 663 million yuan in 2026, and 835 million yuan in 2027, corresponding to PE ratios of 50X, 34X, and 27X respectively [39][41].

Group 1: Oil and Gas Industry - The report predicts that international oil prices will be supported in the short term due to OPEC+ compensation cuts, with Brent crude oil prices expected to fluctuate around $60 per barrel in Q2 2025 [3][10][11] - Recent OPEC+ announcements indicate a reduction of 222,000 barrels per day in April and 378,000 barrels per day in May to compensate for previous overproduction, which may help stabilize oil prices despite concerns about oversupply [8][10] - The report highlights that U.S. commercial crude oil is entering a phase of inventory accumulation, limiting refinery operating intentions, while demand growth in Europe and China remains weak [10][11] Group 2: Market Strategy and Economic Outlook - The report notes a recovery in market risk appetite, with U.S. stock indices showing significant gains, driven by positive earnings from major tech companies [4][13] - It emphasizes the importance of monitoring trade negotiations and inflation trends, as these factors will influence market movements and investor sentiment [4][15] - The report suggests focusing on three main investment themes: technology sector opportunities, consumer sectors supported by policy, and resilient dividend assets amid external disturbances [4][15] Group 3: Domestic Economic Indicators - The report indicates that domestic consumption during the May Day holiday was robust, with significant increases in travel and entertainment spending, suggesting a strengthening consumer base [5][19] - It highlights that industrial profits have shown improvement, with a year-on-year growth of 0.8% in the first quarter of 2025, driven by sectors such as equipment manufacturing and high-tech manufacturing [18][19] - The report discusses the government's efforts to stabilize employment and boost domestic demand through various policy measures, which are expected to support economic growth [18][19] Group 4: Banking Sector - The report states that the overall performance of banks in Q1 2025 was stable, with an average net profit decline of 1.2% year-on-year, primarily due to a decrease in operating income [32][33] - It mentions the introduction of new regulations to standardize supply chain finance, aimed at better serving the financing needs of small and medium-sized enterprises [33] - The report advises investors to consider banks as high-dividend investment options, given the current low-risk interest rate environment and the potential for further interest margin compression [35]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting the stock to outperform the market by over 20% within the next six months [13]. Core Insights - The company reported a strong performance in Q1 2025, achieving a net profit of 29.84 million yuan, a year-on-year increase of 390.89%, despite a revenue decline of 5.24% to 1.219 billion yuan [3][8]. - The company's digital cost business is experiencing positive breakthroughs, driven by AI empowerment, with significant improvements in product application rates and customer satisfaction [8][9]. - The transition in the company's digital construction business is showing results, with enhanced management quality and the successful establishment of value benchmarks in the digital design sector [9]. Financial Performance Summary - In Q1 2025, the company achieved a gross margin of 89.38%, an increase of 1.67 percentage points year-on-year [8]. - The company’s revenue projections for 2025-2027 are 6.39 billion yuan, 6.61 billion yuan, and 6.90 billion yuan, respectively, with corresponding net profits of 493 million yuan, 630 million yuan, and 765 million yuan [7][10]. - The earnings per share (EPS) are projected to be 0.30 yuan, 0.38 yuan, and 0.46 yuan for 2025, 2026, and 2027, respectively [10][11]. Business Segment Insights - The digital cost business is evolving from single-position tools to comprehensive project cost management solutions, with a focus on enhancing data service offerings [8][9]. - The digital construction business is shifting its strategy to prioritize profit and cash flow management, focusing on key production factors and core business management scenarios [9]. - The company has successfully implemented AI functionalities in its cost estimation products, significantly improving efficiency and accuracy [9]. Valuation Metrics - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are approximately 49.4, 38.7, and 31.8, respectively [10][11]. - The projected return on equity (ROE) is expected to increase from 4.7% in 2025 to 11.1% by 2027 [11].