STEC(600820)2024-10-31 06:36Investment Rating - The report maintains a "Recommended" rating for the company [3][6]. Core Insights - The company reported a revenue of 42.888 billion yuan for the first three quarters of 2024, a year-on-year decrease of 8.57%, while the net profit attributable to shareholders was 1.499 billion yuan, a slight increase of 0.35% [2]. - Operating cash flow has improved significantly, with a net cash inflow from operating activities of 2.392 billion yuan, an increase of 2.024 billion yuan year-on-year, primarily due to a reduction in cash paid for goods and services [2]. - The company has shown a notable performance in municipal and road engineering contracts, with a total contract amount of 65.705 billion yuan for the first nine months of 2024, representing a year-on-year growth of 9.46% [3]. Financial Performance Summary - For the first three quarters of 2024, the gross profit margin was 11.65%, a decrease of 0.22 percentage points year-on-year, while the net profit margin increased by 0.36 percentage points to 3.77% [2]. - The company’s asset-liability ratio decreased to 76.96%, down by 0.72 percentage points year-on-year [2]. - The forecast for net profit attributable to shareholders for 2024-2026 is 2.998 billion, 3.192 billion, and 3.457 billion yuan, respectively, with corresponding P/E ratios of 7.17, 6.74, and 6.22 times [3][5].