CNCEC(SH:601117) INDUSTRIAL SECURITIES·2024-11-07 08:37Investment Rating - The report maintains an "Add" rating for the company [2][7]. Core Views - The company has shown significant improvement in Q3 performance, with a notable increase in gross margin and net profit growth [3][6]. - The operating cash flow has seen a reduction in outflow compared to the previous year, indicating better cash management [4]. - New orders have remained stable, with a slight year-on-year increase, although Q3 saw a notable decline due to high base effects from the previous year [5]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 1347.45 billion yuan, a year-on-year increase of 2.34%, and a net profit attributable to shareholders of 38.38 billion yuan, up 3.09% [4][6]. - The gross margin for the first three quarters was 9.08%, an increase of 0.86 percentage points year-on-year, while the net profit margin rose to 3.14%, up 0.06 percentage points [3]. - The company’s operating cash flow for the first three quarters was -56.32 billion yuan, a decrease in outflow of 22.65 billion yuan compared to the previous year [4]. Order and Revenue Insights - New signed orders for the first three quarters totaled 2840.82 billion yuan, reflecting a year-on-year growth of 0.07% [5]. - Q3 revenue reached 437.08 billion yuan, marking an 8.42% increase year-on-year, with net profit for the quarter at 9.99 billion yuan, up 28.57% [6]. Earnings Forecast - The earnings forecast for the company has been adjusted, with expected net profits for 2024-2026 at 56.78 billion yuan, 62.44 billion yuan, and 68.42 billion yuan respectively, with corresponding EPS of 0.93 yuan, 1.02 yuan, and 1.12 yuan [7].