CCCCDC(600720) 国投证券·2024-11-03 14:23Investment Rating - The report maintains an investment rating of "Buy-A" for the company, with a 12-month target price of 11.7 CNY [4][6]. Core Views - The company has undergone a business structure adjustment leading to a decline in revenue but a steady increase in overall performance, with a net profit of 9.80 billion CNY for the first three quarters of 2024, reflecting a year-on-year increase of 2.76% [2][4]. - The company is positioned as a leading state-owned enterprise in the domestic infrastructure design sector, with strong technical advantages and a clear path for overseas expansion [4][6]. - The company is expected to benefit from asset injections from its controlling shareholder, China Communications Construction Group, enhancing its competitive strength in the domestic market [4][6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 67.27 billion CNY, a year-on-year decrease of 22.99%. The quarterly revenues for Q1, Q2, and Q3 were -22.08%, +1.69%, and -44.89% respectively [2][3]. - The gross profit margin for the first three quarters was 28.56%, an increase of 3.32 percentage points year-on-year, attributed to the reduction of low-margin construction business [3][4]. - The net profit margin improved to 14.81%, up 3.77 percentage points year-on-year, with significant investment income contributing to this increase [3][4]. Future Outlook - The company is projected to achieve revenues of 133.94 billion CNY, 137.87 billion CNY, and 144.40 billion CNY for 2024, 2025, and 2026 respectively, with corresponding net profits of 18.95 billion CNY, 20.61 billion CNY, and 22.60 billion CNY [6][7]. - The company is actively expanding into emerging industries such as low-altitude economy, smart transportation, and environmental protection, which are expected to create new growth opportunities [4][6]. Valuation Metrics - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 11.6x, 10.7x, and 9.7x respectively, indicating a favorable valuation compared to industry peers [6][8].