CSCEC(SH:601668) Guotou Securities·2024-08-31 03:03Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 7.05 CNY, compared to the current stock price of 5.24 CNY [3]. Core Views - The company demonstrated resilient operational performance with steady revenue and profit growth in H1 2024, achieving revenue of 1.14 trillion CNY (up 2.81% YoY) and a net profit of 29.45 billion CNY (up 1.65% YoY) [1]. - The infrastructure segment's revenue and new contract signing ratios are continuously improving, with overseas business new contracts doubling [1]. - The company is focusing on optimizing its business structure, with an increase in the proportion of industrial and infrastructure projects [1][2]. Summary by Sections Revenue and Profitability - In H1 2024, the company reported revenue of 1.14 trillion CNY, with a net profit of 29.45 billion CNY, reflecting a year-on-year increase of 2.81% and 1.65% respectively [1]. - The gross profit margin for the company was 9.4%, with improvements noted in the real estate sector [2][7]. Business Segments - The infrastructure business generated revenue of 269.47 billion CNY in H1 2024, up 11.7% YoY, accounting for 23.5% of total revenue [1]. - The construction segment's new contract signing amounted to 2.29 trillion CNY, a 13.7% increase YoY, with significant growth in energy, water, and environmental projects [1]. - The real estate development and investment segment saw revenue of 116.39 billion CNY, although it experienced a decline of 8.7% YoY [2]. Financial Forecasts - The company is projected to achieve revenues of 24.47 trillion CNY, 26.30 trillion CNY, and 28.14 trillion CNY for 2024, 2025, and 2026 respectively, with expected growth rates of 8.0%, 7.5%, and 7.0% [7][8]. - Net profits are forecasted to be 58.65 billion CNY, 63.48 billion CNY, and 68.52 billion CNY for the same years, with growth rates of 8.1%, 8.2%, and 7.9% [7][8].