CCCC(SH:601800) Guotai Junan Securities·2024-10-31 12:29Investment Rating - The report maintains a rating of "Buy" for the company [2][7]. Core Views - The report highlights that due to lower-than-expected infrastructure investment in the construction industry, the earnings per share (EPS) forecasts for 2024-2026 have been revised down to 1.50, 1.56, and 1.60 yuan, representing increases of 3%, 4%, and 3% respectively [2]. - The target price is set at 14.10 yuan, corresponding to a price-to-earnings (PE) ratio of 9.4 times for 2024 [2]. - The company reported a 0.6% decline in net profit for the first three quarters of 2024, which was below expectations, alongside an increase in accounts receivable [2]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 536.64 billion yuan, a year-on-year decrease of 2.26% [2]. - The net profit attributable to shareholders was 16.3 billion yuan, down 0.61% year-on-year [2]. - The expense ratio for the first three quarters was 6.14%, an increase of 0.28 percentage points, while the net profit margin was 3.03%, up 0.06 percentage points [2]. - The weighted return on equity (ROE) was 5.60%, a decrease of 0.50 percentage points [2]. - The operating cash flow for the first three quarters was -77.03 billion yuan, compared to -49.83 billion yuan in the same period of 2023 [2]. Order Growth - New signed orders for the first three quarters of 2024 increased by 9.3%, with urban construction orders growing by 20% [2]. - The total new signed contracts amounted to 1,280.5 billion yuan, with infrastructure contracts at 1,149.5 billion yuan, reflecting a 10% increase [2]. - The company signed 319.6 billion yuan in new contracts in the third quarter of 2024, a year-on-year increase of 12.1% [2]. Dividend and Shareholder Returns - The company announced a mid-term dividend plan, distributing a cash dividend of 0.14 yuan per share, totaling approximately 2.28 billion yuan [2]. - The current dividend yield is 4.21%, and the price-to-book (PB) ratio is 0.61 times, which is at the 27th percentile of the past 10 years [2].