CSCEC(SH:601668) CAITONG SECURITIES·2024-09-01 00:03Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing steady growth in engineering, with improvements in gross profit margins in the real estate sector [1][6] - The revenue for H1 2024 reached 1,144.6 billion yuan, a year-on-year increase of 2.8%, while the net profit attributable to shareholders was 29.45 billion yuan, up 1.6% year-on-year [8] - The company has optimized its engineering business structure, with significant growth in new contracts in various sectors such as construction, energy, and water management [5][8] Financial Performance Summary - For H1 2024, the company reported revenues of 1,144.6 billion yuan, with a gross profit margin of 9.44%, a slight decrease of 0.13 percentage points year-on-year [5][11] - The net profit attributable to shareholders for H1 2024 was 29.45 billion yuan, with a net profit margin of 2.57%, down 0.03 percentage points year-on-year [5][11] - The company’s operating cash flow showed a significant net outflow of 108.77 billion yuan, which is an increase in outflow of 98.21 billion yuan compared to the previous year [5][11] Business Segment Performance - In H1 2024, the company achieved revenues of 7,493.4 billion yuan from housing construction, 2,694.7 billion yuan from infrastructure, and 1,163.8 billion yuan from real estate development, with respective year-on-year growth rates of 1.7%, 11.7%, and -8.7% [5][8] - The new contracts signed in H1 2024 totaled 22,882 billion yuan, representing a year-on-year increase of 13.7%, with notable growth in industrial buildings and municipal construction [5][8] - The company’s overseas marketing quality continues to improve, with new contracts signed domestically and internationally amounting to 21,651 billion yuan and 1,231 billion yuan, respectively, reflecting year-on-year growth of 10.9% and 105.4% [8]