CRCC(601186) 国泰君安·2024-11-04 07:40Investment Rating - The report maintains a rating of "Buy" for China Railway Construction Corporation (CRCC) [2][7]. Core Views - The company is expected to benefit from the release of new projects and the advancement of existing projects due to the implementation of fiscal incremental policies, which may lead to improvements in both profit and asset sides [2]. - The target price is set at 12.47 CNY, corresponding to a PE ratio of 7.4 times for 2024 [2][7]. Financial Summary - Revenue for 2022 was 1,096,313 million CNY, with a projected decrease to 978,165 million CNY in 2024, reflecting a year-on-year decline of 14.0% [1]. - Net profit attributable to shareholders was 26,681 million CNY in 2022, expected to decrease to 22,964 million CNY in 2024, a decline of 12.0% [1]. - Earnings per share (EPS) is projected to drop from 1.96 CNY in 2022 to 1.69 CNY in 2024 [1]. - Return on equity (ROE) is forecasted to decrease from 9.2% in 2022 to 7.0% in 2024 [1]. - The price-to-earnings (PE) ratio is expected to rise from 4.55 in 2022 to 5.28 in 2024 [1]. Performance Metrics - For the first three quarters of 2024, revenue was reported at 758.1 billion CNY, a decrease of 5.99% year-on-year [2]. - Net profit for the same period was 15.7 billion CNY, down 19.18% year-on-year [2]. - The operating cash flow for the first three quarters of 2024 was negative 89 billion CNY, compared to negative 43.2 billion CNY in the same period of 2023 [2]. Order Intake - New signed contracts for the first three quarters of 2024 totaled 14,734 billion CNY, reflecting a decrease of 17.51% year-on-year [14]. - Domestic new contracts decreased by 18.03%, while overseas contracts fell by 10.12% [14]. Market Position - CRCC is recognized as one of the largest and most powerful comprehensive construction groups globally, with a diverse business portfolio including engineering contracting, planning and design consulting, investment operations, and real estate development [2].