CRCC(601186) Tianfeng Securities·2024-11-01 01:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [5]. Core Insights - The company reported a revenue of 758.125 billion yuan for the first three quarters of 2024, a year-on-year decrease of 5.99%, and a net profit attributable to shareholders of 15.695 billion yuan, down 19.18% year-on-year [1][2]. - The cash flow outflow has narrowed in Q3, and the company is expected to benefit from fiscal stimulus measures, with a focus on improving operational efficiency and cost reduction [1][3]. - The company has a backlog of uncompleted contracts amounting to 70,873.74 billion yuan, which is approximately 6.23 times its revenue for 2023, suggesting potential for future revenue recognition [1]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 241.988 billion yuan, down 8.82% year-on-year, and a net profit of 3.793 billion yuan, down 34.27% year-on-year [1]. - The gross margin for the first three quarters of 2024 was 9.2%, a slight decrease from the previous year [3]. - The company’s financial expenses increased significantly, impacting profitability, with Q3 financial expenses reaching 3.109 billion yuan, an increase of 21.2 billion yuan year-on-year [3]. Order and Contract Insights - The company signed new contracts worth 14,734.27 billion yuan in the first three quarters of 2024, a decrease of 17.51% year-on-year, with significant declines in investment operations and engineering contracts [2]. - The water conservancy and mining sectors showed strong growth, with orders increasing by 38.6% and 307.6% year-on-year, respectively [2]. Future Projections - The net profit forecasts for 2024, 2025, and 2026 have been revised down to 21.9 billion yuan, 22.0 billion yuan, and 22.2 billion yuan, respectively, from previous estimates of 27.3 billion yuan, 28.5 billion yuan, and 29.8 billion yuan [1]. - The company’s dividend yield (TTM) stands at 3.9%, indicating a potential for income generation for investors [1].