Shanghai Geoharbour Construction (SH:605598) Soochow Securities·2024-09-01 05:30Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 630 million yuan for the first half of 2024, representing a year-on-year increase of 11.3%, while the net profit attributable to shareholders was 73.81 million yuan, down 30.4% year-on-year [2] - The overseas revenue showed impressive growth, particularly in Southeast Asia, where the company has shifted its strategic focus, achieving significant revenue increases in this region [2] - The company has faced short-term profit pressure due to stock payment expenses, but excluding these effects, the net profit decline would be limited to 5.8% year-on-year [2] - The company signed new contracts worth 1.19 billion yuan in the first half of 2024, exceeding the total new contracts signed in 2023, with a significant portion coming from domestic projects [2] Summary by Sections Financial Performance - Total revenue for 2022 was 885.11 million yuan, increasing to 1,277.45 million yuan in 2023, with projections of 1,707.82 million yuan for 2024, reflecting a growth rate of 44.33% [1] - The net profit attributable to shareholders was 156.79 million yuan in 2022, with a forecast of 214.97 million yuan for 2024, indicating a year-on-year growth of 23.48% [1] - The company’s earnings per share (EPS) is projected to rise from 0.71 yuan in 2023 to 0.87 yuan in 2024 [1] Revenue Breakdown - The company’s geotechnical engineering services generated 4.1 billion yuan from foundation treatment and 2.2 billion yuan from pile foundation engineering in the first half of 2024, with overseas revenue contributing significantly [2] - The gross margin for the Southeast Asia region improved significantly, reaching 37.9%, up 11.7 percentage points from the previous year [2] Cash Flow and Expenses - The net cash flow from operating activities was -15.74 million yuan in the first half of 2024, a decrease of 71.2 million yuan year-on-year, primarily due to declining net profit [2] - The company increased its capital expenditures significantly, with cash payments for fixed assets reaching 60.66 million yuan, up 36.79 million yuan year-on-year [2] Future Outlook - The company is expected to benefit from high infrastructure demand in Southeast Asia and the Middle East, with a strong order acquisition capability supporting its medium to long-term growth prospects [2]