CCCC(SH:601800) Tianfeng Securities·2024-10-31 06:38Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [4][6][14]. Core Views - The company is expected to see improvement in cash flow for the full year, driven by anticipated fiscal stimulus and a peak in receivables in the fourth quarter [4]. - The company has demonstrated resilience in maintaining its leading position in transportation infrastructure, with stable revenue despite a slight year-on-year decline [1][4]. - New orders have shown steady growth, particularly in emerging business sectors, with a significant increase in overseas orders [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 536.6 billion, a year-on-year decrease of 2.3%, with net profit attributable to the parent company at 16.27 billion, down 0.61% [1]. - The gross profit margin for the first three quarters was 11.5%, a slight increase of 0.28 percentage points year-on-year, while the third quarter saw a margin of 11.3%, a decrease of 0.96 percentage points [3]. - The company reported a net profit margin of 3.9% for the first three quarters, up 0.13 percentage points year-on-year, with a third-quarter margin of 3.61%, an increase of 0.18 percentage points [3]. Order and Business Growth - New signed orders for the first three quarters of 2024 reached 12,804.56 billion, representing a year-on-year increase of 9.28%, with the third quarter alone seeing a 12.12% increase [2]. - The traditional infrastructure construction sector has maintained high growth, with significant contributions from road and bridge construction [2]. - The overseas new signed orders totaled 265.16 billion, a year-on-year increase of 24.66%, accounting for 21% of the total new contracts [2]. Cash Flow and Profitability Outlook - The operating cash flow for the first three quarters showed a net outflow of 77.03 billion, an increase of 27.2 billion year-on-year, but the third quarter saw a significant improvement with a net outflow of 2.87 billion [4]. - The company forecasts net profits attributable to the parent company for 2024-2026 to be 25.2 billion, 27.8 billion, and 31.1 billion respectively, with corresponding P/E ratios of 6.6, 6.0, and 5.4 [4][5].