CSCEC(SH:601668) Ge Long Hui·2025-08-26 20:07Core Viewpoint - China State Construction International reported a slight revenue increase of 0.1% year-on-year for H1 2025, with total revenue reaching 56.64 billion RMB and a net profit of 5.26 billion RMB, reflecting a 5.1% growth [1] Group 1: Financial Performance - The company's H1 2025 revenue was 56.64 billion RMB, with a year-on-year growth of 0.1% [1] - The net profit attributable to shareholders for H1 2025 was 5.26 billion RMB, representing a 5.1% increase year-on-year [1] - In Q2 2025, the company reported a revenue of 33.75 billion RMB, a decline of 2.1% year-on-year [1] Group 2: Business Segments - Technology-driven revenue reached 20.54 billion RMB in H1 2025, showing a significant growth of 73.4% year-on-year [1] - Investment-driven revenue was 20.79 billion RMB, experiencing a decline of 21.5% year-on-year [1] - In Q2 2025, technology-driven revenue surged to 15.66 billion RMB, marking a 99.7% increase year-on-year, while investment-driven revenue fell to 9.43 billion RMB, down 39.6% year-on-year [1] Group 3: New Contracts and Profitability - The company secured new contracts worth 92.6 billion RMB in H1 2025, a decrease of 26.0% year-on-year; however, excluding a large order from 2024, the new contracts would show a growth of 22.8% [2] - In Q2 2025, new contracts in the investment sector reached 21.29 billion RMB, reflecting a remarkable growth of 113% year-on-year [2] - The gross margin in mainland China improved to 22.8%, an increase of 2.5 percentage points year-on-year, attributed to the focus on high-quality regions [2] Group 4: Cash Flow and Business Expansion - The company's operating cash flow for H1 2025 was 1.23 billion RMB, an improvement of 1.21 billion RMB year-on-year, with a near 100% cash collection rate in mainland China [3] - The company has expanded its MiC (Modular Integrated Construction) business into major cities, achieving full coverage in first-tier cities [3] - In Hong Kong, the government has increased its average annual basic engineering expenditure forecast from approximately 90 billion HKD to 120 billion HKD, providing further funding assurance for large infrastructure projects [3] Group 5: Dividend Policy - The company maintains a double-digit performance guidance for 2025, with a projected net profit of 10.5 billion RMB, leading to an estimated dividend yield of about 5.7% based on a 33% payout ratio [3]