Xin Lang Cai Jing·2025-09-02 04:28Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating challenges in its financial performance while showing growth in overseas new contracts [1][2]. Financial Performance - The company achieved revenue of 511.09 billion yuan in 1H2025, a year-on-year decrease of 5.93% - The net profit attributable to shareholders was 11.83 billion yuan, down 17.17% year-on-year - The net profit excluding non-recurring items was 10.27 billion yuan, a decline of 21.59% year-on-year - In Q2 alone, revenue was 262.53 billion yuan, down 5.66% year-on-year, with net profit at 5.80 billion yuan, a decrease of 14.65% year-on-year [1]. Business Segment Performance - Revenue from various business segments included: - Infrastructure: 436.25 billion yuan, down 7.78% - Design Consulting: 8.91 billion yuan, down 0.60% - Equipment Manufacturing: 13.75 billion yuan, up 14.39% - Real Estate Development: 15.61 billion yuan, up 7.83% - Gross profit margins for these segments were: - Infrastructure: 7.37%, down 0.53 percentage points - Design Consulting: 24.80%, down 1.44 percentage points - Equipment Manufacturing: 18.16%, down 0.18 percentage points - Real Estate Development: 9.15%, down 3.42 percentage points - The equipment manufacturing segment showed relatively strong revenue growth and gross margin performance [2]. Geographic Performance - Domestic revenue was 475.53 billion yuan, down 6.83% year-on-year, with a gross margin of 8.94%, down 0.17 percentage points - Overseas revenue reached 36.97 billion yuan, up 8.34% year-on-year, with a gross margin of 6.05%, down 1.28 percentage points [2]. New Contracts - The company secured new contracts worth 1,108.69 billion yuan in the first half, an increase of 2.8% year-on-year - Domestic new contracts amounted to 983.82 billion yuan, down 1.2% year-on-year, while overseas new contracts were 124.87 billion yuan, up 51.6% year-on-year [2]. Investment Outlook - The company is expected to achieve net profits attributable to shareholders of 26.36 billion yuan, 27.96 billion yuan, and 30.04 billion yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 5.3, 5.0, and 4.6 times respectively - The investment recommendation remains "Buy" [2].