KAIYUAN SECURITIES·2024-09-04 02:00Investment Rating - The investment rating for China Communications Construction Company (CCCC) is "Buy" (maintained) [1][2] Core Views - The report indicates that while the company's revenue and profit slightly declined in the first half of 2024, the new contract value has increased year-on-year, and the gross profit margins across various segments have improved, particularly in overseas operations [1][2] - The forecast for the company's net profit attributable to shareholders for 2024-2026 is projected at 256.9 billion, 279.4 billion, and 307.5 billion yuan, respectively, with corresponding EPS of 1.58, 1.72, and 1.89 yuan [1][2] Financial Summary - In the first half of 2024, CCCC achieved revenue of 357.45 billion yuan, a year-on-year decrease of 2.5%, with specific growth rates in various segments: infrastructure construction at -2.7%, infrastructure design at -10.3%, dredging at 3.3%, and other businesses at 12.6%. Overseas business revenue grew by 23.5% [1][5] - The net profit attributable to shareholders was 11.4 billion yuan, a year-on-year decrease of 0.6%, with operating cash flow at -74.16 billion yuan. The gross profit margin increased by 0.84 percentage points to 11.65% [1][5] - The new contract value for the first half of 2024 was 960.87 billion yuan, an increase of 8.4% year-on-year, achieving 48% of the annual target. The growth was primarily driven by overseas projects and urban construction [1][5] - The company signed new infrastructure investment projects worth 60.82 billion yuan, a decrease of 49% year-on-year, indicating a slowdown in infrastructure project construction [1][5] Valuation Metrics - The current price-to-earnings (P/E) ratio is projected at 4.8, 4.4, and 4.0 for the years 2024, 2025, and 2026, respectively [1][5] - The gross profit margin is expected to improve gradually from 12.7% in 2024 to 12.9% in 2026, with net profit margins stabilizing around 3.1% [1][5]