CHINA RAILWAY(601390) 长江证券·2024-11-19 11:28Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 818.48 billion yuan for the first three quarters of 2024, a year-on-year decrease of 7.30%. The net profit attributable to shareholders was 20.57 billion yuan, down 14.33% year-on-year [5][6]. - The comprehensive gross margin for the first three quarters was 8.80%, a decline of 0.29 percentage points year-on-year. In the third quarter alone, the gross margin was 8.72%, down 0.86 percentage points year-on-year [6]. - New signed contracts decreased by 15.2% year-on-year, totaling 15,278.6 billion yuan by the end of September. However, new contracts in emerging sectors increased by 23.4% year-on-year [8]. Summary by Sections Financial Performance - For Q1-3 2024, the company achieved a revenue of 818.48 billion yuan, with a gross margin of 8.80%, and a net profit margin of 2.51%, down 0.21 percentage points year-on-year. The net profit attributable to shareholders was 20.57 billion yuan, reflecting a 14.33% decrease [5][6]. - The operating cash flow showed a net outflow of 71.26 billion yuan, which was an increase in outflow by 37.53 billion yuan year-on-year [7]. Contractual Performance - The company signed new contracts worth 15,278.6 billion yuan, a decrease of 15.2% year-on-year. The domestic business accounted for 14,046.3 billion yuan, down 16.1%, while the overseas business was 1,232.3 billion yuan, down 3.2% [8]. - In the third quarter, the engineering construction business saw new contracts of 10,857.3 billion yuan, down 19.2%, while the real estate sector experienced a significant drop of 51.6% in sales [8]. Emerging Business Growth - Emerging business sectors showed strong growth, with new contracts amounting to 2,110.5 billion yuan, a year-on-year increase of 23.4%. Notably, the water conservancy and hydropower sector saw a 106.2% increase in new contracts [8].