CNCEC(SH:601117) GOLDEN SUN SECURITIES·2024-10-31 02:53Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's revenue growth in Q3 2024 showed significant improvement, with total revenue of 134.7 billion, a year-on-year increase of 2.3%. The net profit attributable to shareholders reached 3.84 billion, up 3.1% year-on-year [1] - The gross margin has been continuously improving, with a Q3 gross margin of 9.48%, reflecting a year-on-year increase of 0.82 percentage points [1] - The company signed new contracts worth 284.1 billion in the first three quarters of 2024, a slight increase of 0.1% year-on-year, indicating sustained demand in overseas markets [1] Financial Performance Summary - For Q1-Q3 2024, the company achieved revenues of 134.7 billion, with quarterly revenues of 45.2 billion, 45.9 billion, and 43.7 billion respectively, showing a quarterly growth of +5.5%, -6%, and +8% [1] - The net profit for Q1-Q3 2024 was 3.84 billion, with quarterly net profits of 1.2 billion, 1.6 billion, and 1.0 billion, reflecting a quarterly growth of +9.5%, -12%, and +29% [1] - The company expects net profits for 2024-2026 to be 5.7 billion, 6.3 billion, and 7.2 billion respectively, with corresponding EPS of 0.93, 1.03, and 1.17 [1][2] Contract and Order Summary - The new contract amount for Q3 2024 was 80.5 billion, a decrease of 19% year-on-year, primarily due to a high base from a significant contract signed in the previous year [1] - The company’s domestic and overseas new contracts for Q1-Q3 2024 were 218.4 billion and 65.7 billion respectively, with year-on-year growth of +10% and a decline of -23% [1] Valuation Metrics - The current stock price corresponds to a P/E ratio of 8.8 for 2024, 7.9 for 2025, and 6.9 for 2026, indicating a favorable valuation compared to historical levels [2][3]