ECEC(002140) 天风证券·2024-09-01 12:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [5]. Core Views - The company achieved a revenue of 4.377 billion, representing a year-on-year growth of 25.16%, while the net profit attributable to the parent company was 210 million, up 3.18% year-on-year [1]. - The company is focusing on a development strategy that includes "one basic plate + three verticals and three horizontals," aiming to enhance its competitiveness in the engineering sector [4]. - The chemical engineering sector shows a favorable market condition, with new orders signed amounting to 6.286 billion, a year-on-year increase of 6.25% [2]. Financial Performance - In the first half of 2024, the company reported a gross margin of 8.4%, down 0.49 percentage points year-on-year, while the net profit margin decreased by 1.20 percentage points to 4.69% [3]. - The company’s cash flow from operations (CFO) was 264 million, reflecting an increase of 37 million year-on-year, indicating strong cash flow performance [3]. - The company’s revenue is projected to grow steadily, with estimates of 8.514 billion, 9.623 billion, and 10.948 billion for the years 2024, 2025, and 2026, respectively [4][7]. Order and Market Dynamics - The company signed new contracts worth 6.286 billion in the first half of 2024, with a significant portion (81.63%) related to chemical engineering projects [2]. - The company’s total contracting and design consulting revenues were 4.14 billion and 133 million, respectively, with year-on-year growth rates of 24.27% and 40.2% [2]. Cost and Expense Management - The company’s expense ratio increased by 0.19 percentage points to 3.84%, with specific changes in sales, management, R&D, and financial expenses [3]. - The company’s operating costs are projected to rise, with estimates of 7.638 billion, 8.637 billion, and 9.805 billion for the years 2024, 2025, and 2026, respectively [7].