GF SECURITIES·2024-08-08 00:31Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [3]. Core Views - The China Communications Construction Group has proposed to implement a mid-term dividend plan for 2024, suggesting a dividend amount not exceeding the net profit attributable to shareholders for the first half of 2024 [1]. - New contracts signed in Q2 2024 show stable growth, with a total of 453.6 billion yuan, a year-on-year increase of 6%, and significant growth in overseas contracts, which rose by 82% [1]. - The company is focusing on state-owned enterprise reform to enhance value creation and realization, including stock incentives and plans for a separate listing of its design unit [1]. - The company aims to achieve a net profit of 25.7 billion yuan in 2024, with a projected growth rate of 8% [2]. Summary by Sections Financial Performance - Revenue for 2023 is projected at 758.7 billion yuan, with a growth rate of 5.1%. The net profit for 2023 is expected to be 23.8 billion yuan, reflecting a growth rate of 23.6% [2]. - The company anticipates a net profit of 25.7 billion yuan in 2024, with an EPS of 1.58 yuan per share [2]. - The P/E ratio for 2024 is estimated at 5.47, indicating a favorable valuation [2]. Strategic Initiatives - The company is enhancing shareholder returns by increasing the dividend payout ratio to 20% in 2023, with expected dividend yields of 3.7% for A-shares and 7.6% for H-shares in 2024 [1]. - The focus on urban construction and overseas markets is expected to drive growth, particularly in regions like the Middle East, Africa, and Southeast Asia [1]. Future Outlook - The company aims for a new contract growth rate of at least 13.2% and revenue growth of 8.2% in 2024 [1]. - The projected net profits for 2024, 2025, and 2026 are 25.7 billion yuan, 27.7 billion yuan, and 29.9 billion yuan, respectively [2].