CNCEC(SH:601117) Guolian Securities·2024-11-05 13:38Investment Rating - The investment rating for the company is "Buy (Maintain)" [4] Core Views - The company's profitability continues to improve, with new contracts showing structural highlights. The Q3 2024 results indicate a year-on-year revenue increase of 8% and a net profit increase of 29% [2][6] - The company has experienced a decline in new contracts in the chemical engineering sector, while infrastructure and new materials businesses have seen rapid growth [2][6] - The "Two Business" strategic transformation is expected to support the company's growth momentum and quality [6] Financial Performance Summary - For the first three quarters of 2024, total revenue reached 134.7 billion yuan, up 2% year-on-year, with a net profit of 3.8 billion yuan, up 3% year-on-year [2][6] - In Q3 2024, total revenue was 43.7 billion yuan, up 8% year-on-year, and net profit was 1 billion yuan, up 29% year-on-year [2][6] - The comprehensive gross profit margin for the first three quarters of 2024 was 9.5%, an increase of 0.8 percentage points year-on-year [6] - The company expects revenues of 201.6 billion yuan, 228.2 billion yuan, and 258.6 billion yuan for 2024, 2025, and 2026 respectively, with a compound annual growth rate (CAGR) of 15% over three years [6][7] Contract and Business Segment Analysis - The total new contract amount for the first three quarters of 2024 was 284.1 billion yuan, a slight increase year-on-year, with Q3 2024 new contracts amounting to 80.5 billion yuan, down 19% year-on-year [6] - New contracts in the infrastructure and new materials sectors showed significant growth, with respective year-on-year increases of 28% and 19% [6] - The company’s new contract amounts for various segments in Q3 2024 were 61.4 billion yuan for chemical engineering, 14.8 billion yuan for infrastructure, and 2.2 billion yuan for new materials [6] Valuation Metrics - The current price of the company's stock is 8.22 yuan, with a market capitalization of approximately 49.73 billion yuan [4] - The earnings per share (EPS) for 2024 is projected to be 1.00 yuan, with a price-to-earnings (P/E) ratio of 8.2 [7] - The company’s asset-liability ratio stands at 69.95% [4]