ATCDI(603357)2024-06-25 01:50Summary of Conference Call Notes Company Overview - The company provides comprehensive solutions for infrastructure such as highways, bridges, tunnels, and waterways, ranking among the top 50 surveying and design firms and top 100 engineering consulting firms in China [1] - In 2023, the company was successfully approved as a "Double Hundred Enterprise" by the State-owned Assets Supervision and Administration Commission, becoming a benchmark enterprise in Anhui Province [1] Digital Business - Digital business is a key component of the company's 14th Five-Year Plan, encompassing big data, cloud services, smart transportation, digital construction, and information technology [1] - Internally, digital technology enhances the company's main businesses (highways, bridges, urban and water transport), improving digital capabilities and delivery [1] - Externally, the company expands its business upstream and downstream through digital technology, offering smart waterways, smart transportation, and industrial construction solutions [1] - The private cloud business includes a large-scale self-use private cloud with GPU, providing infrastructure leasing and consulting services, including high-performance computing support [1][3] Low-altitude Economy and General Airports - The company won a bid for Anhui Province's civil aviation "14th Five-Year" development plan, becoming a provincial-level technical support unit for the low-altitude economy [2] - The company has 13 ongoing general airport projects, covering the entire process from application, approval to design and construction [2] - A strategic framework agreement was signed with the Anhui Provincial Air Traffic Management Bureau to promote low-altitude economic development, with related projects expected to launch in the second half of the year [2] Financial Outlook and Performance - The company's target for 2024 is to achieve a net profit of 500 million yuan, with a required return on equity of 13.74% and a compound annual growth rate of net profit of 8.2% [2] - Revenue growth in Q1 was primarily driven by general contracting, but net profit declined year-on-year due to low profit margins in general contracting and delays in revenue recognition for surveying and design services [2][4] - The company plans to distribute dividends of no less than 30% annually, depending on cash flow and investment conditions [2] Digital Twin and Smart Transportation - The company has initiated research on digital twins and included digital twin content in the bid for the second phase of the traffic control group's big data center project [2] - Collaborations with vendors like Beidou Fuxi focus on utilizing their digital twin platforms for application development [2] Policy and Market Environment - Anhui Province's low-altitude economic development policies are still being formulated, with city-level investigations for take-off and landing points [2] - Multiple application scenarios for low-altitude economy have been established in Hefei, including drone logistics and medical services [2] - As a pilot province for low-altitude airspace reform, the construction of general airports is accelerating, with more supportive policies expected in the future [2][15] Additional Insights - The company is exploring various low-altitude experimental scenarios in Hefei, including drone testing and logistics [11] - The company has participated in the application for provincial pilot cities, assisting 8-9 cities in preparing application materials [14] - The construction scale of general airports is approximately 300-400 million yuan, with design fees accounting for 3-4% of the total price and a gross profit margin of about 40-50% [6]