中国建筑：业绩有所承压，现金流显著改善

Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company experienced a decline in revenue and net profit in the first three quarters, with revenue of 16,265.41 billion yuan, down 2.67% year-on-year, and a net profit of 397.03 billion yuan, down 9.05% year-on-year [4][5]. - Despite the revenue decline, cash flow significantly improved in Q3, indicating a focus on operational quality and collections [7][8]. - The overall order volume decreased in Q3, particularly in the housing construction sector, while the infrastructure sector showed resilience [5][6]. - The company is expected to benefit from government policies aimed at debt reduction, which may improve its operational and valuation aspects [8]. Summary by Sections Financial Performance - In the first three quarters, the company reported a revenue of 16,265.41 billion yuan, a decrease of 2.67% year-on-year, and a net profit of 397.03 billion yuan, down 9.05% year-on-year [4]. - The Q3 revenue was 4,819.22 billion yuan, reflecting a 13.62% year-on-year decline [5]. - The gross profit margin for the first three quarters was 8.83%, a decrease of 0.10 percentage points year-on-year, while the Q3 gross profit margin was 7.36%, down 0.27 percentage points [6]. Cash Flow and Debt Management - The company reported a net cash outflow from operating activities of 77.01 billion yuan in the first three quarters, but Q3 saw a significant cash inflow of 31.76 billion yuan, marking the best Q3 cash flow performance historically [7]. - The cash collection ratio improved to 118.40% in Q3, up 12.34 percentage points year-on-year [7]. Future Outlook - The company is projected to achieve net profits of 505.2 billion yuan, 530.5 billion yuan, and 556.3 billion yuan for the years 2024 to 2026, with corresponding valuations of 5.2, 4.9, and 4.7 times [8].