CSCEC(601668) Haitong Securities·2024-10-29 10:43Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a revenue of 1,626.54 billion yuan for the first three quarters of 2024, a decrease of 2.67% year-on-year, and a net profit attributable to the parent company of 39.70 billion yuan, down 9.05% year-on-year [5] - The company experienced a decline in revenue and profit in Q3, with a notable increase in overseas revenue growth of 42.32% year-on-year for the same quarter [5] - The company is a leader in the real estate and infrastructure sectors, with a continuous optimization of its business structure and robust operational performance [5] Summary by Sections Financial Performance - For Q1 to Q3 of 2024, the company achieved revenues of 10,440 billion yuan from housing construction, 3,845 billion yuan from infrastructure construction and investment, 1,760 billion yuan from real estate development and investment, and 69 billion yuan from surveying and design, with year-on-year changes of -3.3%, -1.3%, +1.7%, and -6.6% respectively [5] - The gross profit margin for the first three quarters of 2024 decreased by 0.10 percentage points to 8.83% [5] - The company reported a significant increase in operating cash flow in Q3, with a net inflow of 31.76 billion yuan, up 375.51 billion yuan year-on-year [5] Business Development - The company signed new contracts worth 29,874 billion yuan in the first three quarters of 2024, an increase of 7.9% year-on-year, with notable growth in overseas contracts, which increased by 77.6% [5] - The real estate segment reported a contract sales amount of 260.5 billion yuan, down 21.9% year-on-year, while the company maintained a strong position in the industry [5] Earnings Forecast - The company is expected to have an EPS of 1.27 yuan in 2024 and 1.32 yuan in 2025, with a reasonable valuation range of 6.37 to 7.64 yuan based on a PE ratio of 5-6 times for 2024 [5][6]