In 24 years, the growth rate of the profit side turned positive, and the profitability increased significantly China

General Signal announced its 2024 annual report, achieving an annual operating income of 32.47 billion yuan, a year-on-year decrease of 12.2%; The net profit attributable to the parent company was 3.49 billion yuan, an increase of 0.5% year-on-year. gross profit margin was 29.2%, up 3.5 percentage points year-on-year; The net profit margin was 12.5%, an increase of 1.7 percentage points year-on-year, and the company's revenue structure continued to adjust, and the efforts to reduce costs and increase efficiency increased. The company intends to pay a dividend of RMB 0.17 per share, with a dividend ratio of 51.5%.



In the past 24 years, the company's railway/urban rail/engineering general contracting achieved revenue of 188.9/82.2/2.69 billion yuan, a year-on-year change of -1.9%/-3.6%/-65.0% respectively. According to the separation of different business segments, the company's equipment manufacturing and design integration segments with higher gross profit margins achieved revenue of 6.60/12.25 billion yuan respectively, a year-on-year increase of 8.0%/4.5%. On the whole, the company's annual operating income has declined, but the revenue structure continues to be optimized, and in the future, with the implementation of large-scale equipment renewal and transformation policies by the state and the gradual increase in the demand for EMU maintenance, the pressure on the company's operating performance is expected to be gradually eased.

In 24 years, the company's overseas business achieved operating income of 2.44 billion yuan, a year-on-year increase of 64.2%, and the main reason for the significant year-on-year increase in revenue was the recognition of the revenue of the Hungarian section of the Hungarian section of the Hungarian-Serbian railway. In 24 years, the company has signed a total of 5.92 billion yuan of new overseas contracts, a year-on-year increase of 58.3%. The company has contracted major projects such as the general contracting project of signal system supply and integration installation of the northern axis project of the Sao Paulo intercity railway in Brazil, the general contracting project of the integrated construction of the "three electrics" system of the Masi railway in Guinea, and the procurement project of the signal and train operation control system of the Masi railway in Guinea, and the overseas market has maintained a continuous growth trend.

Focus on the low-altitude economy and open the second growth curve

The 2025 government work report proposes to promote the safe and healthy development of emerging industries such as the low-altitude economy. The company continues to promote the "dual tracks" of rail transit and low-altitude economy, cultivates low-altitude airspace control industry, unmanned aerial vehicle manufacturing industry, and service operation industry, and accelerates the construction of an industrial pattern of "three industries and one state" of low-altitude economy. The company's 24-year low-altitude airspace control system achieved its first flight in Nanjing, and obtained the first contract order in Nan'an; Promote the demonstration and application of low-altitude inspection, low-altitude logistics and other scenarios in Hefei, Chongqing, Nujiang and other places, promote Qingdao, Shijiazhuang and other places to deepen the "rail + low-altitude" integrated development model, create a "air-rail combined transport" cross-sea route from Zhanjiang West to Haikou, and create a new model of "village super + low-altitude" in Rongjiang County, Guizhou.

Maintain "buy" rating The

company's business structure continues to be optimized, and it is expected to benefit from the increase in demand for rail transit equipment renewal and maintenance in the future, and the low-altitude economy business is expected to open the second growth curve. Subsequently, we raised the company's 25-26 net profit attributable to the parent company by 7.8%/4.1% to 43.2/4.84 billion yuan, and introduced the 27-year net profit attributable to the parent company forecast of 5.52 billion yuan, corresponding to 25-27 years EPS of 0.41/0.46/0.52 yuan respectively, maintaining the company's A share and H share "buy" rating.

Risk warning: the risk of intensified competition in the industry, the risk of declining urban rail boom, and the risk of unsatisfactory promotion of overseas projects