Core Viewpoint - The company reported a decline in revenue and net profit for 2024, but showed growth in Q1 2025, indicating potential recovery and opportunities for future growth [2][3]. Group 1: Financial Performance - In 2024, the company achieved revenue of 7.315 billion yuan, a year-on-year decrease of 4.67%, and a net profit of 682 million yuan, down 17.60% [2]. - For Q1 2025, the company reported revenue of 1.112 billion yuan, an increase of 9.14% year-on-year, and a net profit of 26 million yuan, up 117.20% [2]. Group 2: Segment Performance - The digital infrastructure segment generated revenue of 3.365 billion yuan in 2024, a year-on-year increase of 1.56%, driven by growth in information technology procurement, although gross margin decreased to 16.55%, down 3.22 percentage points [3]. - The enterprise digital application segment saw revenue decline to 877 million yuan, down 20.20%, despite an increase in gross margin to 28.79%, up 5.82 percentage points [3]. - The power digital application segment achieved revenue of 2.254 billion yuan, a year-on-year increase of 7.45%, with gross margin improving to 21.66%, up 1.12 percentage points [3]. - Revenue from cutting-edge technology innovation and energy innovation services declined significantly, down 33.34% and 18.20%, respectively, totaling 506 million yuan and 312 million yuan [3]. - Overall, the company's gross margin for 2024 was 20.17%, a decrease of 1.39 percentage points [3]. Group 3: Strategic Initiatives - The company is accelerating the acquisition of Yili Technology to optimize its industrial layout, with a signed intention to acquire shares expected to be finalized by August 31, 2025 [4]. - Yili Technology, a subsidiary of the State Grid Information Communication Group, reported revenue of 1.45 billion yuan and a net profit of 102 million yuan for the first nine months of 2024 [4]. - The company is focusing on digital transformation trends, enhancing technological innovation capabilities, and optimizing its industrial layout by concentrating on core competencies and value creation [5].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a revenue of 7.315 billion yuan in 2024, a decrease of 4.67% year-on-year, with a net profit of 682 million yuan, down 17.60% year-on-year. In Q1 2025, revenue increased by 9.14% year-on-year to 1.112 billion yuan, and net profit surged by 117.20% year-on-year to 26 million yuan [1][2]. - The company is accelerating the acquisition of Yili Technology to optimize its industrial layout, with the acquisition expected to be completed by August 31, 2025. Yili Technology generated 1.45 billion yuan in revenue and 102 million yuan in net profit in the first nine months of 2024 [3]. - The company is focusing on digital transformation trends and enhancing its technological innovation capabilities, targeting major demands in the new power system and various significant projects [3]. Summary by Sections Financial Performance - In 2024, the digital infrastructure segment generated 3.365 billion yuan, up 1.56% year-on-year, while the enterprise digital application segment saw a decline of 20.20% to 877 million yuan. The power digital application segment grew by 7.45% to 2.254 billion yuan [2]. - The overall gross margin for 2024 was 20.17%, a decrease of 1.39 percentage points year-on-year [2]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been slightly adjusted to 973 million yuan and 1.168 billion yuan, respectively, with a new forecast for 2027 at 1.345 billion yuan. The corresponding EPS for these years is projected to be 0.81, 0.97, and 1.12 yuan, with P/E ratios of 22, 19, and 16 [4][10]. - The company is expected to benefit from its status as an important subsidiary of the State Grid, which ensures a stable order flow and performance [4]. Market Data - The current share price is 18.09 yuan, with a total market capitalization of 21.732 billion yuan [6].