CSCEC(601668) 东吴证券·2024-10-28 10:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a decline in revenue and profit for Q3 2024, with a year-on-year decrease in revenue of 2.7% and a decrease in net profit attributable to shareholders of 9.1% for the first three quarters [2] - The company is facing pressure on revenue and profit due to market adjustments, but it is focusing on optimizing its business structure and expanding high-quality projects [3] - The company has seen improvements in cash flow from operating activities, with a significant increase in cash receipts in Q3 [4] - New contract signings have improved, particularly in overseas markets, with a year-on-year increase of 77.6% in new contracts [5] - The company is the largest engineering contractor globally and is expected to benefit from the new round of state-owned enterprise reforms and the Belt and Road Initiative [5] Financial Performance Summary - For the first three quarters of 2024, the company achieved total revenue of 1,626.54 billion yuan, with a net profit of 39.7 billion yuan [2] - In Q3 alone, the company reported revenue of 481.92 billion yuan, with a net profit of 10.25 billion yuan, reflecting a year-on-year decrease of 30.2% [2] - The revenue breakdown for Q3 shows construction revenue of approximately 294.7 billion yuan, infrastructure revenue of 115 billion yuan, real estate development revenue of 59.6 billion yuan, and survey and design revenue of 1.5 billion yuan [3] - The company’s gross profit margin for Q3 was 2.1%, down 0.5 percentage points year-on-year [4] - The company’s total liabilities amounted to 2,172.25 billion yuan, with a debt-to-asset ratio of 76.2% [4] Order and Contract Summary - The company signed new contracts worth 3.25 trillion yuan in the first three quarters of 2024, a year-on-year increase of 4.7% [5] - The breakdown of new contracts includes 2,001.1 billion yuan from construction and 976.3 billion yuan from infrastructure, with significant growth in specific sectors [5]