Investment Rating - The investment rating for China Electric Power Construction Group (601669.SH) is "Buy" and is maintained [8]. Core Views - On November 13, China Electric Power Construction Group announced a large-scale tender for photovoltaic components, inverters, and energy storage systems for the 2025 framework procurement project, which is expected to significantly boost the company's new energy installation targets for 2025 [3][4]. - The company aims to achieve a total installed capacity of 51GW by 2025, which includes both self-invested projects and externally contracted projects [3]. - The company has set ambitious targets for new energy installations during the 14th Five-Year Plan, with a goal of adding 30GW of wind and solar capacity, which could potentially increase the installed capacity to between 46GW and 64.6GW by the end of 2025 [4][5]. - The recent large-scale tender is anticipated to accelerate the implementation of the company's installation plans, although actual installed capacity may be lower due to the demand from the company's EPC (Engineering, Procurement, and Construction) business [5]. - The company signed new contracts worth 159.201 billion yuan for solar power projects in the first half of 2024, indicating a significant demand for photovoltaic components [5]. - The company is positioned to benefit from recent policies promoting a new power system and green transformation, which are expected to drive growth in its new energy and pumped storage sectors [6]. Summary by Sections Event Description - On November 13, the company released a tender announcement for the 2025 procurement of photovoltaic components, inverters, and energy storage systems [3]. Event Commentary - The scale of the tender is substantial and is likely to propel the company's new energy installation targets for 2025 [3]. - The company has set a total installed capacity target of 51GW for 2025, which includes both self-invested and contracted projects [3]. - The company has previously outlined a goal of adding 30GW of new energy capacity during the 14th Five-Year Plan, with a breakdown target of 48.5GW for its subsidiaries, exceeding the overall target by 18.5GW [4]. - As of June 2024, the company had an installed capacity of 28.14 million kilowatts, with significant year-on-year growth in solar power installations [4]. Financial Projections - The company projects total revenue of 648.052 billion yuan for 2024, increasing to 733.137 billion yuan by 2026, with a net profit forecast of 17.665 billion yuan in 2024 and 19.788 billion yuan in 2026 [10].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [4]. Core Views - The company achieved operating revenue of 425.669 billion yuan in the first three quarters, representing a year-on-year increase of 1.20%. However, the net profit attributable to shareholders was 8.806 billion yuan, a decrease of 7.21% year-on-year. The net profit after deducting non-recurring gains and losses was 7.917 billion yuan, down 14.41% year-on-year [4][5]. - The company signed new orders amounting to 861.123 billion yuan in the first three quarters, an increase of 5.42% year-on-year, with significant growth in the energy and power sector [6]. Summary by Sections Financial Performance - In the first three quarters, the company reported operating revenue of 425.669 billion yuan, a 1.20% increase year-on-year. The net profit attributable to shareholders was 8.806 billion yuan, down 7.21% year-on-year, while the net profit after deducting non-recurring items was 7.917 billion yuan, a decrease of 14.41% [4][5]. - For the third quarter alone, the operating revenue was 140.747 billion yuan, reflecting a 1.01% year-on-year growth, but the net profit decreased by 9.00% to 2.468 billion yuan [4]. Profitability Metrics - The overall gross margin for the first three quarters was 12.42%, a slight increase of 0.12 percentage points year-on-year. However, the gross margin for the third quarter was 12.73%, a decrease of 0.15 percentage points year-on-year [5]. - The net profit margin for the first three quarters was 2.07%, down 0.19 percentage points year-on-year, while the net profit margin after deducting non-recurring items was 1.86%, a decrease of 0.34 percentage points [5]. Cash Flow and Financial Health - The company experienced a net cash outflow from operating activities of 46.926 billion yuan in the first three quarters, which was an increase in outflow by 11.002 billion yuan year-on-year. The cash collection ratio improved to 99.15%, up 7.82 percentage points year-on-year [6]. - The asset-liability ratio increased by 1.13 percentage points year-on-year to 79.03%, and the accounts receivable turnover days increased by 1.96 days to 78.42 days [6]. Order Intake and Market Position - The company signed new orders totaling 861.123 billion yuan in the first three quarters, a year-on-year increase of 5.42%. Specifically, new orders in the energy and power sector reached 518.39 billion yuan, a growth of 19.68% year-on-year [6]. - Domestic new orders amounted to 685.121 billion yuan, a 3.13% increase year-on-year, while overseas new orders were 176.003 billion yuan, up 15.42% year-on-year [6].

Investment Rating - The report maintains a "Buy" rating for China Electric Power Construction (601669.SH) with a current price of 5.96 CNY [2] Core Views - The company has shown slight revenue growth with a steady increase in new contracts, achieving a total revenue of 426.35 billion CNY and a net profit of 8.81 billion CNY for the first nine months of 2024, reflecting a year-on-year change of +1.2% for revenue but a decline of -7.2% for net profit [3][4] - The gross profit margin has slightly improved to 12.4%, while the net profit margin has decreased to 2.8% due to increased interest expenses and R&D investments [4] - New contracts signed in the energy sector have increased by 5.4% year-on-year, with significant growth in energy and power contracts [4] Summary by Sections Revenue and Profitability - For the first nine months of 2024, the company reported total revenue of 426.35 billion CNY, a net profit of 8.81 billion CNY, and a net profit excluding non-recurring items of 7.92 billion CNY, with respective year-on-year changes of +1.2%, -7.2%, and -14.4% [3][4] - The gross profit margin for the same period was 12.4%, with a net profit margin of 2.8%, indicating a slight increase in gross margin but a decrease in net margin due to rising costs [4] Contract and Order Growth - The company signed new contracts worth 861.12 billion CNY in the first nine months of 2024, marking a 5.4% increase year-on-year, with domestic contracts at 685.12 billion CNY and international contracts at 176 billion CNY [4] - The breakdown of new contracts by business segment shows a 19.7% increase in energy and power contracts, while water resources and urban construction contracts saw declines of -10.1% and -17.2%, respectively [4] Future Outlook and Valuation - The company is expected to accelerate its new energy installations, with a total installed capacity of approximately 28.9 GW as of the end of Q3 2024 [4] - The profit forecasts for 2024-2026 have been adjusted downwards to 12.46 billion CNY, 14.57 billion CNY, and 16.28 billion CNY, reflecting a decrease of 14.9%, 11.5%, and 11.2% respectively [4]

Investment Rating - The report maintains a "Buy" rating for the company [3][7]. Core Views - The company reported a revenue of 42.57 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 1.2%. However, the net profit attributable to shareholders decreased by 7.2% to 8.8 billion yuan, and the non-recurring net profit fell by 14.4% to 7.9 billion yuan [2][5]. - The company continues to experience resilient revenue growth, but the decline in non-recurring profits is significant, primarily due to asset impairment provisions and non-current asset disposal gains [5]. - The demand for water conservancy investments and renewable energy projects remains strong, with positive growth prospects for the company's engineering business [5][7]. - The company's power operation business is expanding rapidly, and there is a notable contribution from the sand and gravel business [5][7]. Financial Performance Summary - For Q1-Q3 2024, the company's gross margin was 12.4%, a slight increase of 0.1 percentage points year-over-year, while the expense ratio rose to 8.4%, an increase of 0.3 percentage points [5]. - The company's net profit margin for Q1-Q3 was 2.1%, down 0.2 percentage points year-over-year, with Q3 showing a net profit margin of 1.8%, also down 0.2 percentage points [5]. - The new contract value for Q1-Q3 2024 reached 861.1 billion yuan, a year-over-year increase of 5.4%, with significant contributions from the energy and electricity sector [5][7]. - The company's total debt ratio increased to 79.0% by the end of Q3 2024, up 1.1 percentage points year-over-year, indicating a challenging cash collection environment [5][6]. Future Projections - The report projects the company's revenue for 2024-2026 to be 643.4 billion yuan, 698.1 billion yuan, and 776.5 billion yuan, respectively, with year-over-year growth rates of 6%, 8%, and 11% [7]. - The net profit attributable to shareholders is expected to be 13.2 billion yuan, 14.7 billion yuan, and 16.6 billion yuan for the same period, with growth rates of 2%, 11%, and 13% [7].

Investment Rating - The report maintains an "Overweight" rating for the company [3][9]. Core Views - The company has shown steady growth in new orders, particularly in the energy and power sector, with a total of 861.12 billion yuan in new contracts signed in the first three quarters of 2024, representing a year-on-year increase of 5.42% [5]. - Despite a slight increase in gross margin to 12.42%, the net profit margin has decreased to 2.78%, down 0.15 percentage points year-on-year due to rising expenses and impairment provisions [4][6]. - The company’s operating revenue for the first three quarters of 2024 reached 426.35 billion yuan, a modest increase of 1.17% year-on-year, while net profit attributable to shareholders decreased by 7.21% to 8.81 billion yuan [8][9]. Financial Summary - The company’s total assets are reported at 1,287.50 billion yuan, with net assets of 167.31 billion yuan [3]. - The earnings per share (EPS) for 2024 is projected at 0.74 yuan, with corresponding price-to-earnings (PE) ratios of 7.6, 6.9, and 6.4 for the years 2024, 2025, and 2026 respectively [9][10]. - The company’s cash flow from operating activities showed a net outflow of 46.93 billion yuan in the first three quarters of 2024, indicating increased pressure on cash flow management [7].

Core Viewpoint - China Electric Power Construction Group achieved a record high in contract signing at the 7th China International Import Expo, with a total signing amount of 320 million USD [1] Group 1 - The event took place from November 5 to 6 in Shanghai [1] - China Electric signed contracts with four well-known multinational companies: Metso, Siemens Energy, Hitachi Energy, and Schneider Electric [1] - The total signing amount of 320 million USD marks the highest in the history of the expo [1]

Investment Rating - The investment rating for the company is "Buy" with a target price of 7.31, maintaining the previous rating of "Buy" [4]. Core Views - The company's performance in the first three quarters of 2024 was below expectations, but the growth in its new energy investment and operation business is expected to support profits. The company is anticipated to benefit from the favorable conditions in the energy and power industry, achieving sustained and stable growth [7]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 425.7 billion, a year-on-year increase of 1.20%. The net profit attributable to the parent company was 8.8 billion, a decrease of 7.21% year-on-year. The operating cash flow was -46.9 billion, compared to -35.9 billion in the same period of 2023 [12][13]. - The company’s new contract signing in the first three quarters of 2024 reached 861.1 billion, a year-on-year increase of 5.42%, with energy and power orders growing by 19.68% [12][17]. Market Position - The company is a leading player in global hydropower construction, holding over 65% of the construction tasks for large and medium-sized hydropower stations in China. It also dominates the pumped storage power station market, accounting for over 50% of the global market share in large and medium-sized water conservancy and hydropower construction [12][18]. Business Segments - In the first three quarters of 2024, the new contract amounts by business segment were as follows: Energy and Power at 518.39 billion (up 19.68%), Water Resources and Environment at 111.97 billion (down 10.07%), Urban Construction and Infrastructure at 198.50 billion (down 17.16%), and Other at 32.25 billion (up 64.99%) [17].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a slight increase in revenue year-on-year, with significant growth in overseas business [1] - The company aims to strengthen its traditional infrastructure business while developing a second growth curve around new energy power [1] - The forecasted net profit for the years 2024-2026 is expected to be 14.89 billion, 16.17 billion, and 18.02 billion CNY respectively, with corresponding EPS of 0.86, 0.94, and 1.05 CNY [1] Financial Performance Summary - For the first nine months of 2024, the company achieved a revenue of 425.67 billion CNY, a year-on-year increase of 1.20%, while the net profit attributable to the parent company was 8.81 billion CNY, a decrease of 7.21% [1] - The gross profit margin for the first three quarters was 12.42%, an increase of 0.12 percentage points year-on-year, while the net profit margin was 2.78%, a decrease of 0.14 percentage points year-on-year [1] - The company signed a total of 6,950 new contracts with a total value of 861.12 billion CNY in the first nine months of 2024, representing a year-on-year growth of 5.42% [2] - The new contract amounts for energy power, water resources and environment, urban construction and infrastructure, and others were 5,183.90 billion CNY, 1,119.74 billion CNY, 1,985.05 billion CNY, and 322.54 billion CNY respectively, with year-on-year changes of +19.68%, -10.07%, -17.16%, and +64.99% [2] Valuation Metrics - The projected revenue for 2024 is 666.62 billion CNY, with a year-on-year growth of 9.6% [2] - The projected P/E ratios for 2024, 2025, and 2026 are 6.5, 5.9, and 5.3 respectively [2] - The projected P/B ratios for the same years are 0.7, 0.6, and 0.5 respectively [2]

Investment Rating - The report maintains an "Accumulate" rating for China Power Construction (601669) [4][6]. Core Views - The company reported a revenue of 425.67 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.20%, while the net profit attributable to shareholders was 8.806 billion yuan, a decrease of 7.21% [1]. - New orders showed steady growth, particularly in the energy and power sector, with new orders totaling 861.123 billion yuan for the first three quarters, up 5.42% year-on-year [1]. - The gross margin remained stable at 12.42% for the first three quarters, with a slight increase of 0.12 percentage points year-on-year [2]. - Cash flow from operations saw a significant outflow, with a net cash flow of 46.926 billion yuan, reflecting an increase in cash payments for goods and services [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 140.75 billion yuan, a year-on-year increase of 1.01%, and a net profit of 2.47 billion yuan, down 9.00% year-on-year [1]. - The gross margin for Q3 was reported at 12.73%, a decrease of 0.15 percentage points year-on-year [2]. - Financial expenses increased to 7.975 billion yuan, up 686 million yuan year-on-year, and asset impairment losses rose to 695 million yuan, an increase of 573 million yuan [2]. Order Growth - The company secured new orders of 2,122.36 billion yuan in Q3, which remained flat year-on-year. The energy and power sector saw the highest growth in new orders, totaling 518.39 billion yuan, up 19.68% [1]. Future Outlook - The report anticipates continued high demand for hydropower construction, benefiting from the national energy strategy and improved local government finances, which should enhance the company's cash flow and profitability [3]. - The profit forecast for 2024-2026 is adjusted slightly, with expected net profits of 13.898 billion yuan, 15.155 billion yuan, and 16.620 billion yuan, representing year-on-year growth rates of 7.00%, 9.05%, and 9.66% respectively [6][7].

公司报告 | 季报点评 Q3 扣非净利润下滑 36.5%，业绩同比压力 Q4 或有所 缓解 Q3 扣非净利润下滑 36.5%，大力度化债预期下公司基本面有望逐步修复 公司发布 24 年三季报，前三季度公司实现营收 4256.69 亿，同比+1.2%， 归母、扣非净利润为 88.06、79.17 亿，同比-7.21%、-14.41%。其中，24Q3 单季实现营收 1407.47 亿，同比+1.01%，归母、扣非净利润为 24.68、16.84 亿，同比分别-9%、-36.47%（以上数据均为修正后）。今年上半年地方考核 制度影响了发债积极性以及地方投资意愿，我们认为后续若增加地方政府 举债空间，化债对正常发展的资金挤出将得到有效缓解，公司政府类投资 项目有望正常运行。我们下调公司24-26 年归母净利润预测至129/145/166 亿元（前值 148/169/196 亿），维持"买入"评级。 Q3 流动资产处置收益同比增加 6.5 亿致扣非净利润大幅下滑 24Q1-3 公司毛利率为 12.42%，同比+0.12pct，其中，单 Q3 毛利率下降 0.15 pct 至 12.73%。24Q1-3 公司期间费用率 ...