CRHIC(600528) 东方财富·2024-11-11 10:23Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [6]. Core Insights - The company reported a revenue of 20.539 billion yuan for the first three quarters of 2024, a year-on-year decrease of 5.56%, with a net profit attributable to shareholders of 1.32 billion yuan, down 11.25% year-on-year [2][3]. - New contract signings remained stable, with a total of 37.328 billion yuan in new contracts for the first three quarters, a decline of 2.82% year-on-year, but the decline rate narrowed compared to the first half of 2024 [2][3]. - The company's shield tunneling business has seen an increase in its revenue contribution, rising to 28% of total revenue in H1 2024, compared to 23% in 2023 [3]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 6.56 billion yuan, down 4.21% year-on-year, and a net profit of 384 million yuan, down 20.88% year-on-year [2]. - The gross margin for the first three quarters was 18.84%, a decrease of 0.43 percentage points year-on-year, attributed to reduced demand in traditional sectors affecting product pricing [3]. - The company’s cash flow from operations showed a net outflow of 1.547 billion yuan, an increase in outflow of 386 million yuan year-on-year [3]. Market Position and Outlook - The company is expected to benefit from increased demand in water conservancy and hydropower projects, with a strong market position in tunnel boring machines, holding approximately 60% and 85% market share in relevant sectors [3]. - The report anticipates that as demand increases, product pricing may improve, which could enhance profit margins and overall performance [3]. Earnings Forecast - The forecast for net profit attributable to shareholders is projected at 1.583 billion yuan for 2024, reflecting a year-on-year decrease of 9.20%, followed by a recovery in 2025 with an expected increase of 29.11% [6][7]. - The company’s earnings per share (EPS) is expected to be 0.71 yuan in 2024, with a price-to-earnings (P/E) ratio of 11.94 [7].