CNCEC(SH:601117)2024-09-04 10:00Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported a slight decline in revenue and net profit for the first half of 2024, with revenue at 910.37 billion yuan, down 0.34% year-on-year, and net profit at 28.39 billion yuan, down 3.63% year-on-year [1]. - The company experienced growth in its chemical engineering and new materials segments, with overseas performance showing significant improvement, particularly in new contract signings [1][2]. - The company is actively participating in the "Belt and Road" initiative, leading to substantial growth in overseas contracts, which increased by 132.53% year-on-year [1]. Financial Performance Summary - Revenue breakdown for H1 2024: Chemical engineering revenue was 739.18 billion yuan (up 4.32% YoY), infrastructure revenue was 101.24 billion yuan (down 20.23% YoY), environmental governance revenue was 11.24 billion yuan (down 22.39% YoY), and industrial and new materials revenue was 44.42 billion yuan (up 6.63% YoY) [1]. - The company achieved a gross margin of 9.39%, an increase of 1.05 percentage points year-on-year, while the net margin was 3.44%, a slight decrease of 0.07 percentage points [1]. - The company’s asset-liability ratio decreased to 69.83%, down 1.39 percentage points year-on-year, indicating improved financial stability [1]. Future Profitability Forecast - The company is projected to achieve net profits of 56.72 billion yuan, 61.86 billion yuan, and 68.25 billion yuan for the years 2024, 2025, and 2026, respectively, reflecting growth rates of 4.53%, 9.06%, and 10.33% [2][3]. - Corresponding P/E ratios are expected to be 7.04, 6.46, and 5.85 for the same years [2].