Investment Rating - The report initiates coverage with a "Buy" rating for Shenzhen RuiJie (300977 SZ) [1] Core Views - Shenzhen RuiJie is a pioneer in the third-party engineering assessment industry, with a diversified business model including third-party assessment and project management [1] - The company has optimized its customer structure by reducing reliance on real estate clients and expanding into industrial and insurance sectors, leading to a 161% YoY increase in net profit in 2023 [1] - The engineering assessment business, the company's core segment, benefits from the "quality competition" trend in the real estate sector, with a stable market demand [1] - The insurance assessment business, particularly IDI-TIS, has significant first-mover advantages and is expected to grow rapidly due to the nationwide rollout of housing insurance pilots [1] - The company has successfully diversified its revenue streams by targeting high-quality industrial clients and exploring new business models such as hotel evaluation and property operation and maintenance [1] Financial Performance - Revenue for 2023 was RMB 491 million, a 14 1% YoY decline, but net profit attributable to shareholders increased by 160 7% YoY to RMB 41 million [2] - The company's EPS for 2023 was RMB 0 27, with a P/E ratio of 68 8x [2] - Revenue is expected to grow by 23 3% and 23 1% in 2025 and 2026, respectively, with net profit projected to increase by 38% and 33% in the same years [2] Business Segments Engineering Assessment - The engineering assessment market size for 2023 is estimated to be between RMB 3 4 billion and RMB 8 4 billion, driven by the "quality competition" trend in real estate [1] - The company has a strong brand reputation due to its integrity management system and a comprehensive product matrix covering the entire project lifecycle [1] - It has a nationwide presence, covering over 700 cities, and is exploring overseas markets [1] Insurance Assessment - The IDI (Inherent Defects Insurance) market size in 2023 is estimated to be between RMB 3 6 billion and RMB 5 billion, with potential growth to RMB 11 7 billion if the pilot program expands to 22 cities [1] - The company has established partnerships with major insurance companies such as PICC, Ping An, and China Pacific, and its insurance-related revenue grew by 26% YoY in H1 2024 [1] Industrial Clients and New Business Models - The company has aggressively expanded into industrial clients, with industrial-related revenue growing by 190% YoY in H1 2024 [1] - It has developed new business models such as hotel evaluation and property operation and maintenance, leveraging its "service + platform + data" model [1] - The company's "1125" strategy aims to transform its business from "engineering consulting" to "comprehensive technical services," with a focus on quality and safety [1] Financial Projections - The company's net profit is forecasted to be RMB 38 million, RMB 52 million, and RMB 70 million for 2024, 2025, and 2026, respectively, with YoY growth rates of -7%, +38%, and +33% [1] - The EPS for 2024-2026 is projected to be RMB 0 25, RMB 0 34, and RMB 0 46, respectively [1] Market Position and Competitive Advantages - The company has a strong brand reputation due to its integrity management system and a comprehensive product matrix covering the entire project lifecycle [1] - It has a nationwide presence, covering over 700 cities, and is exploring overseas markets [1] - The company has established partnerships with major insurance companies such as PICC, Ping An, and China Pacific, and its insurance-related revenue grew by 26% YoY in H1 2024 [1]
深圳瑞捷：第三方评估行业拓荒者，客群结构优化加速转型