Guotou Securities·2024-09-03 12:30Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 9.36 CNY [3]. Core Insights - The company reported a revenue of 357.448 billion CNY for H1 2024, a year-on-year decrease of 2.52%, while the net profit attributable to shareholders was 11.398 billion CNY, down 0.59% year-on-year [1][2]. - The infrastructure business faced pressure with a revenue decline in Q2, while overseas revenue continued to grow significantly, increasing by 23.54% year-on-year [1][2]. - The overall gross margin improved to 11.65%, up 0.89 percentage points year-on-year, with all business segments showing margin increases [2]. - The company signed new contracts worth 960.867 billion CNY in H1 2024, an increase of 8.37% year-on-year, with notable growth in urban construction and overseas projects [2]. Summary by Sections Financial Performance - H1 2024 revenue was 357.448 billion CNY, with a Q2 revenue decline of 5.02% year-on-year [1]. - The gross margin for H1 2024 was 11.65%, with Q2 gross margin at 11.42%, reflecting a significant year-on-year increase [2]. - Operating cash flow showed a net outflow of 74.161 billion CNY, worsening from a net outflow of 49.582 billion CNY in H1 2023 [2]. Business Segments - Infrastructure construction revenue decreased by 2.74% year-on-year, while dredging business revenue grew by 3.27% [1]. - The overseas business accounted for 19.48% of total revenue, marking a 4.07 percentage point increase year-on-year [1]. Future Outlook - Revenue projections for 2024-2026 are 819.371 billion CNY, 876.727 billion CNY, and 938.097 billion CNY, with expected year-on-year growth rates of 8.0%, 7.0%, and 7.0% respectively [6]. - The net profit forecasts for the same period are 25.39 billion CNY, 27.49 billion CNY, and 29.63 billion CNY, with growth rates of 6.6%, 8.3%, and 7.8% respectively [6].