GLODON(002410) 国海证券·2024-11-03 13:20Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The company is focusing on improving operational quality and is expected to benefit from policy support, leading to stabilization in the industry [1][6]. - The company has shifted its strategy from pursuing scale to focusing on profitability and cash flow, resulting in an improved contract structure for core products [1][2]. - The digital construction business is expected to enhance the quality of core products, while the digital design segment aims to establish project benchmarks for future scaling [4][6]. Financial Performance Summary - For the first three quarters of 2024, the company's revenue was 4.51 billion and 0.47 billion for digital construction and digital design businesses, respectively, reflecting a year-on-year decline of 40% and 26.22% [1]. - The total revenue for the first three quarters was 43.96 billion, down 8.03% year-on-year, with a net profit attributable to shareholders of 2.13 billion, down 18.47% year-on-year [2]. - In Q3 2024, the company reported revenue of 14.38 billion, a decrease of 15.96% year-on-year, but a significant increase in net profit of 0.21 billion, up 59.71% year-on-year [2]. Business Strategy and Market Outlook - The company is actively reducing low-margin product sales to enhance overall profitability, with a notable improvement in the contract structure of core products [1][2]. - The digital cost business generated 36.25 billion in revenue, with a slight decline of 1.29% year-on-year, while the renewal rate for pricing products remained stable despite lower new purchases due to industry conditions [3][4]. - The company plans to deepen relationships with existing clients and expand into new sectors such as international markets, infrastructure, and new energy to drive future growth [3][4]. Earnings Forecast - The company is projected to achieve revenues of 62.91 billion, 70.55 billion, and 79.93 billion for 2024, 2025, and 2026, respectively, with net profits expected to be 4.78 billion, 7.84 billion, and 9.92 billion [6][10]. - The estimated EPS for 2024, 2025, and 2026 are 0.29, 0.47, and 0.60, with corresponding P/E ratios of 46, 28, and 22 [6][10].