Introduction to this report:
Facing a complex market environment, the company actively expands its market layout externally, while deepening technological innovation internally to continuously improve efficiency and competitiveness. Looking ahead to the second half of the year, orders are expected to increase rapidly through early market development and accumulation.
Key points of investment:
Considering that the company's new operating rate was insufficient during the reporting period, EPS was reduced to 0.39/0.45/ 0.52 yuan in 2024/25/26 (previous value was 0.45/0.56/0.69 yuan), and 2.5 xPS was given in 2024,
Maintain the target price at $13.43 and maintain the increase in holdings.
Performance summary: 24H1 operating income 0.66 billion/ -41.82%, net profit due to mother 0.048 billion/ -60.64%, net profit not attributable to mother 0.041 billion/ -62.92%. The decline in performance was mainly due to insufficient new construction rates during the reporting period, delivery schedule was not as good as expected, and new business development expenses increased; 24Q2 operating income 0.37 billion/ -53.76%, net profit to mother 0.014 billion/ -86.01%, less Non-return net profit 0.013 billions/ -86.35%.
We are actively expanding the number of major projects that have won bids, and orders are expected to increase in the second half of the year. Faced with a complex market environment, the company relied on excellent project execution and technological innovation capabilities to actively expand the market. During the reporting period, the company successfully won bids for many major projects, including the Xunyi County Cinema and Anhui Baijiu City. Furthermore, the company focuses on developing potential international markets, establishing localized marketing networks in the Middle East and Southeast Asia, and establishing cooperative relationships with well-known local companies in New Zealand. Looking ahead to the second half of the year, after early accumulation and an increase in intended projects in the creative direction of cultural tourism IP planning, combined with an increase in subsequent projects participating in C-side operations, orders are expected to increase.
Deeply involved in the fields of planning and IP, and continuously innovate to enhance competitiveness. The company is deeply involved in technological innovation and technological innovation capabilities. The Haikou International Duty Free Shop “AURA Sky Forest” project, which was jointly built by the subsidiary Digital Arts Technology and the world-renowned company Vita Studio, won many awards at home and abroad, and many integrated projects produced by the company received unanimous praise from within and outside the industry. Furthermore, the company actively explores the application of cutting-edge technology, creatively integrates next-generation technologies such as MR, AR/VR, artificial intelligence, and big data to continuously raise competitive barriers.
Risk warning: consumer confidence is insufficient, competition is intensifying, and new business falls short of expectations;