CSCEC(SH:601668) Haitong Securities·2024-09-02 09:09Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company achieved a revenue of 1,144.619 billion yuan in H1 2024, a year-on-year increase of 2.81%, and a net profit attributable to the parent company of 29.450 billion yuan, up 1.65% year-on-year [5] - The company has shown steady growth in its construction and infrastructure segments, with significant increases in new contracts signed overseas, up 117% [5] - The company's gross margin decreased slightly to 9.44%, while the net profit margin fell to 3.51% due to increased impairment losses [5] - The company is expected to maintain a stable performance with projected EPS of 1.37 yuan for 2024 and a reasonable valuation range of 6.84 to 8.21 yuan, maintaining the "Outperform the Market" rating [5] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 1,144.619 billion yuan, with a breakdown of revenue from various segments: housing construction (749.337 billion yuan), infrastructure (269.473 billion yuan), and real estate development (116.385 billion yuan) [5] - The company experienced a significant increase in cash outflow, with operating cash flow net outflow reaching 108.769 billion yuan, an increase of 930.01% [5][6] Business Segments - The company’s new contracts in the construction sector reached 2,434.8 billion yuan in the first seven months of 2024, a year-on-year increase of 11.8%, with notable growth in infrastructure contracts [5] - The real estate segment saw a revenue decline of 8.7% in H1 2024, but the decline was less severe compared to the previous year [5] Valuation and Forecast - The company is projected to have an EPS of 1.37 yuan in 2024 and 1.47 yuan in 2025, with a PE ratio of 5-6 times for 2024 [6][8] - The estimated revenue for 2024 is 2,382.483 billion yuan, with a projected growth rate of 5.2% [6][8]