CNCEC(SH:601117)2024-11-03 02:14Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company achieved steady growth in performance, with revenue of 1347.45 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 2.34%. The net profit attributable to shareholders was 38.38 billion yuan, up 3.09% year-on-year [1]. - The company has shown an improvement in profitability, with a gross margin of 9.08%, an increase of 0.86 percentage points year-on-year, and a net margin of 3.14%, up 0.07 percentage points year-on-year [1]. - New contract signings in infrastructure, environmental governance, and industrial sales have seen rapid growth, with total new contracts amounting to 2840.82 billion yuan from January to September 2024, a slight increase from the previous year [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported a net cash outflow from operating activities of 56.32 billion yuan, which is an increase in outflow by 22.65 billion yuan year-on-year [1]. - The accounts receivable increased to 355 billion yuan, up 74.8 billion yuan year-on-year [1]. - The company forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 57.16 billion yuan, 62.38 billion yuan, and 68.35 billion yuan respectively, with corresponding P/E ratios of 8.78, 8.05, and 7.35 [2][3].