CTFO(002373) 花旗·2025-04-27 03:55Investment Rating - The investment rating for China TransInfo Technology is "Sell" with a target price of Rmb5.1, indicating an expected share price return of -38.0% and a total expected return of -37.6% [4][8]. Core Insights - In 4Q24, revenue decreased by 28% year-over-year to Rmb1.8 billion, which was 40% and 25% below CitiE and BBGe estimates respectively [2][6]. - The gross margin for 4Q24 fell by 5.4 percentage points year-over-year to 32.1%, which was 6.1 percentage points below CitiE but 4.5 percentage points above BBGe [2][6]. - Operating expenses increased by 3% year-over-year to Rmb796 million, leading to an operating loss of Rmb206 million compared to an operating profit of Rmb179 million in 4Q23 [2][6]. - The overall net loss for 4Q24 was Rmb1.2 billion, aligning with previous guidance [2][6]. - For FY24, revenue declined by 7% year-over-year, with net losses also at Rmb1.2 billion compared to a net profit of Rmb542 million in FY23 [2][6]. Segment Breakdown - In the second half of 2024, revenue from intelligent transportation fell by 54% year-over-year to Rmb798 million, while the overall FY24 revenue for this segment decreased by 26% year-over-year to Rmb2.2 billion [3]. - The gross margin for the intelligent transportation segment narrowed by 12 percentage points year-over-year to 19.5% in 2H24, and the FY24 gross margin decreased by 7.3 percentage points to 21.1% [3]. - Conversely, revenue from intelligent IoT increased by 7% year-over-year to Rmb2.9 billion in 2H24, with an overall FY24 revenue growth of 5% year-over-year to Rmb5.1 billion [3].