CNCEC(601117) 国泰君安·2024-11-09 05:04Investment Rating - The investment rating for the company is "Accumulate" [2] Core Views - The report indicates that China Chemical's performance in the first three quarters of 2024 showed steady profit growth, with a net profit increase of 3.1% year-on-year, although it was below expectations. The company is expected to see future growth in its industrial new materials segment due to its extensive layout and technological advantages [5][6]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 134.2 billion yuan, a growth of 2.38% year-on-year. The net profit attributable to shareholders was 3.838 billion yuan, reflecting a growth of 3.09% [6]. - The operating cash flow for the first three quarters was -5.6 billion yuan, compared to -3.4 billion yuan in the same period of 2023 [6]. - The company’s new contract signing for the first three quarters was 284.1 billion yuan, a slight increase of 0.07% year-on-year, with domestic contracts increasing by 9.82% while overseas contracts decreased by 22.72% [6][14]. Business Segments - The report highlights that the construction engineering contracting segment saw a slight decline in new contracts, with chemical engineering contracts down by 5.94%. However, the infrastructure segment experienced a growth of 27.65% [6][14]. - The industrial and new materials sales segment reported a growth of 19.09%, indicating a positive trend in high-value-added new materials [6][14]. Future Outlook - The company has revised its earnings per share (EPS) forecasts for 2024-2026 to 0.92, 0.99, and 1.07 yuan, respectively, reflecting growth rates of 3%, 8%, and 8% [6]. - The target price remains at 10.73 yuan, corresponding to a price-to-earnings (PE) ratio of 11.66 times for 2024 [6].