MCC(SH:601618) Guotai Junan Securities·2024-11-01 11:54Investment Rating - The investment rating for China Metallurgical Group Corporation is "Buy" [3] Core Views - The report highlights a significant increase in net profit for Q3, showcasing the company's resilience amid industry pressures. The implementation of new fiscal policies and progress in mineral resource projects are expected to further enhance performance [5][6] - The company has experienced a 16.5% year-on-year decline in net profit for the first three quarters of 2024, but a remarkable 177.5% increase in net profit for Q3 alone exceeded expectations [6][7] - The target price is maintained at 4.89, corresponding to an 11x PE for 2024 [6] Financial Summary - For the first three quarters of 2024, revenue was 412.6 billion, down 11.71% year-on-year, while net profit was 6.831 billion, down 16.53% [6][7] - The company’s operating cash flow for the first three quarters was -30.7 billion, compared to -22.5 billion in the same period of 2023 [6][7] - New signed contracts decreased by 9.2% year-on-year, with overseas contracts increasing by 85.2% [6][16] Market Data - The stock price range over the past 52 weeks was between 2.57 and 3.55, with a total market capitalization of 69.217 billion [6] - The company’s total shares are 20.724 billion, with 17.853 billion in circulation [6] Order and Contract Data - The total new signed contracts for the first three quarters of 2024 amounted to 891.69 billion, with a notable decline in domestic contracts but a significant increase in overseas contracts [16][17] - The breakdown of new signed contracts shows a decline in housing construction and municipal infrastructure projects, while industrial manufacturing and other engineering contracts saw an increase [16]