CSCEC(601668) 东吴证券·2024-08-30 22:33Investment Rating - Buy (Maintained) [1] Core Views - The company's performance in emerging sectors is strong, with rapid growth in overseas orders [1] - The company achieved revenue of 11446 billion yuan in the first half of 2024, a year-on-year increase of 2.8%, and net profit attributable to the parent company of 294.5 billion yuan, a year-on-year increase of 1.6% [3] - The company's new construction and infrastructure emerging sectors performed well, with new contract amounts for construction/infrastructure/real estate development/survey and design businesses reaching 15320/7491/1915/72 billion yuan, respectively, with year-on-year growth rates of +5.7%/+34.9%/-20.6%/-9.2% [3] - Overseas business new contract amount increased significantly by 107.4% year-on-year to 1291 billion yuan [3] Financial Performance - The company's operating income is expected to grow from 2055052 million yuan in 2022 to 2773195 million yuan in 2026, with a compound annual growth rate of 6.65% [2] - Net profit attributable to the parent company is expected to grow from 50950 million yuan in 2022 to 65531 million yuan in 2026, with a compound annual growth rate of 6.50% [2] - EPS is expected to increase from 1.22 yuan per share in 2022 to 1.57 yuan per share in 2026 [2] - The company's P/E ratio is expected to decrease from 4.28 in 2022 to 3.33 in 2026 [2] Business Segments - The company's construction business focuses on high-end "new construction" fields, with new contract amounts in industrial plants/education, science, culture, and health fields reaching 2891/2695 billion yuan, a year-on-year increase of +26.1%/+3.3% [3] - The company's infrastructure business has made new breakthroughs in photovoltaic, wind power, nuclear power, and environmental protection fields, with new contract amounts in energy engineering/water and environmental protection/water conservancy and water transport fields reaching 2609/794/277 billion yuan, a year-on-year increase of +230.4%/+49.2%/+42.5% [3] Cost and Expense Management - The company's sales/management/R&D/financial expense ratios in the first half of 2024 were 0.3%/1.5%/1.5%/0.9%, with the R&D expense ratio decreasing by 0.2 percentage points year-on-year [4] - The company's net cash flow from operating activities was -1088 billion yuan in the first half of 2024, an increase of 982 billion yuan in outflow year-on-year, mainly due to a significant increase in the scale of operating receivables such as accounts receivable and inventory [4] Strategic Initiatives - The company has pioneered an integrated platform for prefabricated building construction operations and released the UBF2.0 technology for unmanned beam fields and the "Road Intelligence" intelligent construction system for road accessories, accelerating the layout of intelligent construction [4] - The company's professional sectors and subsidiaries are more rationally laid out, further enabling efficient and high-quality construction [4] Valuation and Market Data - The company's closing price on August 29, 2024, was 5.39 yuan, with a P/E ratio of 3.8 times for 2024, 3.6 times for 2025, and 3.3 times for 2026 [4] - The company's market capitalization is 224279.64 million yuan, with a P/B ratio of 0.51 times [5]