CSCEC(SH:601668) Mei Ri Jing Ji Xin Wen·2025-08-29 15:20Core Viewpoint - China State Construction's (601668.SH) mid-year performance report indicates challenges in the real estate sector, with a focus on urban renewal and high-quality housing projects as future growth opportunities [4][10]. Group 1: Financial Performance - In the first half of the year, the company's real estate contract sales amounted to 174.5 billion yuan, a year-on-year decrease of 8.9% [4][9]. - The real estate segment's revenue reached 131.88 billion yuan, reflecting a year-on-year increase of 13.3%, while gross profit was 21.05 billion yuan, down 6.8% year-on-year [4][9]. - The company reported a sales return of 144.6 billion yuan from its real estate business, a year-on-year increase of 6%, with a significant improvement in operating cash flow net amounting to 23.8 billion yuan [10]. Group 2: Strategic Initiatives - The company has initiated urban renewal projects in over 150 cities, with new contract signings totaling 160 billion yuan, representing a 10% year-on-year increase [5]. - A focus on the "good housing" initiative has led to the establishment of a construction system aimed at enhancing housing quality, with several projects already in practice [5][6]. - The company plans to increase resource investment and improve the integrated implementation model of investment, construction, and operation to secure high-quality projects [6]. Group 3: Market Outlook - The management expressed confidence in the long-term potential of the real estate market, particularly in core cities, despite current challenges [9][10]. - The central urban work conference has provided direction for the industry, emphasizing a shift towards sustainable development focused on housing quality and service [10]. - The company aims to enhance its competitive edge in the real estate sector by focusing on core urban areas and increasing investment in affordable housing [10].