CRCC(SH:601186) GOLDEN SUN SECURITIES·2025-03-29 14:23Investment Rating - The report maintains a "Buy" rating for China Railway Construction Corporation (601186.SH) [5] Core Views - The company's performance in Q4 showed a significant narrowing of the decline, with total revenue for 2024 at 1,067.2 billion, down 6% year-on-year, and net profit attributable to shareholders at 22.2 billion, down 15% year-on-year [1][2] - The new contract signing in Q4 improved marginally, with a total of 15,635 billion signed, up 4% year-on-year, indicating a recovery in order intake [3] Financial Performance - The company's comprehensive gross margin for 2024 was 10.27%, a decrease of 0.13 percentage points year-on-year, primarily due to declining profitability in infrastructure projects [2] - The operating cash flow showed a net outflow of 31.4 billion, compared to a net inflow of 20.4 billion in the previous year, indicating pressure on cash flow [2] Business Segmentation - In terms of revenue by business segment, engineering contracting generated 9,312 billion, down 6%, with infrastructure, housing construction, and other engineering revenues declining by 4%, 9%, and 8% respectively [1] - The company’s overseas revenue maintained steady growth, with domestic revenue declining by 7% while overseas revenue increased by 9% [1] Order Book and Future Outlook - The total new contracts signed for 2024 amounted to 30,370 billion, down 8%, but the backlog of uncompleted contracts stood at 77 trillion, which is 7.2 times the revenue for 2024, indicating a robust order book [3] - The projected net profits for 2025-2027 are 21.5 billion, 21.6 billion, and 21.9 billion respectively, with corresponding EPS of 1.58, 1.59, and 1.61 [3][4]