CCCC(SH:601800) HTSC·2024-09-01 06:03Investment Rating - The investment rating for the company is "Buy" (maintained) for both A and H shares [2][3] Core Views - The company reported a revenue of 357.4 billion RMB and a net profit attributable to shareholders of 11.4 billion RMB for the first half of 2024, reflecting a year-on-year decline of 2.5% and 0.6% respectively [2] - The gross margin improved year-on-year to 11.65%, an increase of 0.84 percentage points, driven by better project management and structural adjustments [3] - The company has a target price of 11.13 RMB for A shares and 6.97 HKD for H shares, adjusted from previous values due to slower-than-expected revenue growth [2] Revenue and Profitability - For the first half of 2024, the company achieved a revenue of 3,574 billion RMB, with a net profit of 114 billion RMB, showing a decline compared to the previous year [2] - The gross margin for the second quarter of 2024 was reported at 11.42%, with a slight increase from the previous quarter [3] - The company maintains net profit forecasts of 25.9 billion RMB, 28 billion RMB, and 30 billion RMB for 2024, 2025, and 2026 respectively [2] Business Segments - Infrastructure construction revenue was 3,181 billion RMB, down 2.74% year-on-year, while the gross margin improved to 10.63% [3] - The company signed new contracts worth 9,609 billion RMB in the first half of 2024, representing an increase of 8.4% year-on-year, with overseas contracts growing by 39% [5] Financial Metrics - The company’s operating cash flow was negative at -742 billion RMB for the first half of 2024, indicating a cash outflow increase of 248 billion RMB year-on-year [4] - The net profit margin for the first half of 2024 was 3.19%, a slight increase from the previous year [4] - The company’s earnings per share (EPS) for 2024 is projected at 1.59 RMB, with a price-to-earnings (PE) ratio of 5.28 [6]