CDG(SH:603018) Zheng Quan Zhi Xing·2025-06-09 13:31Core Viewpoint - The credit rating agency maintains the credit rating of China Huase Design Group Co., Ltd. at AA with a stable outlook, reflecting the company's strong market position in the surveying and design sector, despite challenges in new contract acquisition and cash flow management [3][28]. Company Overview - China Huase Design Group has a complete and high-level design qualification, maintaining a strong market position in the transportation surveying and design field in Jiangsu Province [3][16]. - The company has a diversified ownership structure with no controlling shareholder, which raises concerns about management stability [4][15]. Financial Performance - As of March 2025, the total assets of the company were 122.82 billion, with total liabilities at 69.53 billion, indicating a decrease in both assets and liabilities compared to previous years [7][25]. - The operating revenue for 2024 was 44.28 billion, down from 53.53 billion in 2023, reflecting a declining trend in business scale [7][22]. - The net profit for the first quarter of 2025 was 0.58 billion, showing a significant decrease compared to previous periods [7][22]. Contract Acquisition and Market Position - The new contract amount for 2024 was 68.79 billion, a decline from 74.31 billion in 2023, primarily due to reduced demand in traditional road and municipal projects [18][19]. - The company remains focused on government investment projects, with government clients accounting for approximately 94.80% of new contracts [18][19]. Cash Flow and Debt Management - The company has maintained positive operating cash flow, with a net cash inflow of 3.07 billion in the first quarter of 2025, although this represents a decline from previous periods [7][22]. - As of March 2025, the company had a total debt of 9.40 billion, with a debt-to-EBITDA ratio of 1.69, indicating manageable debt levels compared to industry standards [7][25]. Industry Outlook - The construction industry is facing challenges due to a downturn in the real estate sector, which is expected to continue affecting demand for construction services [10][12]. - Despite these challenges, infrastructure investment remains a key support for the construction market, with government and central enterprises taking on more investment responsibilities [12][13].