CNCEC(SH:601117) Haitong Securities·2024-09-10 00:08Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company reported a revenue of 91.037 billion yuan for H1 2024, a year-on-year decrease of 0.34%, while the net profit attributable to the parent company was 2.839 billion yuan, down 3.63%. However, the net profit excluding non-recurring items increased by 3.46% to 3.050 billion yuan [3] - The company experienced a decline in revenue and net profit in Q2 2024, with Q1 showing a revenue increase of 5.54% and Q2 a decrease of 5.53%. The net profit for Q1 increased by 9.50%, while Q2 saw a decrease of 11.58% [3] - The company’s gross margin improved by 1.06 percentage points to 9.39% in H1 2024, with specific segments like chemical engineering and new materials showing significant improvements [3] - The company signed new contracts worth 215.418 billion yuan from January to July 2024, a year-on-year increase of 10.02%, with overseas contracts increasing by 153.93% [3] - The earnings per share (EPS) for 2024 and 2025 are projected to be 0.97 yuan and 1.06 yuan, respectively, with a reasonable valuation range of 9.68 to 10.65 yuan based on a price-to-earnings ratio of 10-11 times for 2024 [3] Financial Summary - For H1 2024, the company’s revenue by segment was as follows: chemical engineering 73.918 billion yuan, infrastructure 10.124 billion yuan, environmental governance 1.124 billion yuan, industrial and new materials 4.442 billion yuan, and modern services 0.747 billion yuan [3] - The company’s operating cash flow turned into a net outflow of 4.571 billion yuan in H1 2024, compared to a net inflow of 226 million yuan in H1 2023 [3] - The company’s total revenue is projected to grow from 179.196 billion yuan in 2023 to 194.126 billion yuan in 2024, with a year-on-year growth rate of 8.3% [4][10]