Maintain the increase in holdings. It is predicted that in 2024-2026 EPS1.16/1.25/1.35 yuan will increase 13/8/ 7%, the low-altitude economy and AI will increase development space, and the target price will be raised to 15.7 yuan, corresponding to 13.5 times PE in 2024.
The low-altitude economy catalyzes continuous expansion of market space. (1) On May 1, the first Chongqing Low Altitude Flight Consumption Week was launched in 2024, and various new low-altitude consumption formats and new scenarios were launched. (2) On May 1, Henan's “Attacking Certain Measures to Ensure “Double Half” in the Second Quarter” stated that it will introduce an implementation plan to promote low-altitude economic development.
(3) On April 30, the first low-altitude short-haul route between Shenzhen and Zhuhai commenced operation. (4) On April 30, the Nanjing Jiangning Development Zone Special - Low Altitude Economy, Industry and Finance Special Event was held.
The company's competitive advantage in the low-altitude economy has been significantly underestimated. (1) Relying on an industry think tank (Beijing Civil Aviation Institute) +planning and design industry planning (company headquarters) +industry application (China aviation), the company has formed a low-altitude economic business pattern from industry planning, standard policy research, to general aviation and supporting facilities design consulting, to integrated control platform construction and implementation in the drone industry. It has successively provided engineering consulting services for 113 transportation airports and 18 general airports. The industry chain is longer and more experienced. (2) Design companies related to the low altitude field 2024PE/ market capitalization are 69 times the market capitalization of Shenzhen, 26 times that of Sujiaoke/ 11.7 billion, and Huasheng 9 times/7 billion. Industrial chain Rice information 78 times/CITIC Haizhi 59 times/Wanfeng Aowei 34 times.
Continuing to strengthen digital empowerment, the acceleration of special debt in the second quarter will drive an improvement in order workload. (1) The subsidiary Dinoni developed AIRoad 2.0, VRRoad 2.0, and EICAD 5.0 to undertake multiple 10-million-level digital intelligent construction management platforms, increasing design efficiency related to interactive digital design platforms by more than 10 times.
(2) The National Conference on April 30 called for speeding up the issuance and use of special bonds and focusing on key tasks in the integrated development of the Yangtze River Delta. The company is the leading front-end infrastructure design company in the Yangtze River Delta and will be the first to benefit.
Risk warning: macroeconomic policies have been tightened beyond expectations, infrastructure investment has fallen short of expectations, etc.