CRCC(SH:601186) Tianfeng Securities·2025-03-29 09:30Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][18]. Core Views - The company is expected to face pressure on its performance in 2024, with a projected revenue of CNY 1,067.17 billion, down 6.2% year-on-year, and a net profit attributable to shareholders of CNY 22.22 billion, down 14.9% year-on-year [1][4]. - The company has a significant backlog of contracts amounting to CNY 42,820.8 billion, which is approximately four times its revenue for 2024, indicating potential for future revenue recognition as market conditions improve [1]. - The company is focusing on cost reduction and efficiency improvement measures to enhance financial performance and report quality [1]. Financial Performance Summary - In 2024, the company achieved revenues of CNY 10,671.7 billion, a decrease of 6.2% year-on-year, and a net profit of CNY 222.2 billion, down 14.9% year-on-year [1]. - The company's cash flow from operations turned negative at CNY -314.2 billion, a decline of CNY 518.4 billion year-on-year, indicating significant cash flow challenges [3]. - The company reported a financial expense of CNY 7.95 billion in 2024, an increase of CNY 3.28 billion from the previous year, which has significantly impacted profitability [3]. Business Segment Performance - The engineering contracting segment generated CNY 9,312 billion in revenue, down 5.7% year-on-year, while the real estate development segment saw a more pronounced decline with revenues of CNY 719 billion, down 13.7% year-on-year [2]. - The company has been expanding into emerging industries, with new contracts in these sectors totaling CNY 24.5 billion, an increase of 36% year-on-year [2]. - Domestic revenue decreased by 7.1% to CNY 10,013 billion, while overseas revenue increased by 9.3% to CNY 659 billion [2]. Financial Data and Valuation - The projected net profit for 2025 is CNY 22.53 billion, with a slight increase expected in subsequent years [4]. - The company's earnings per share (EPS) for 2024 is projected at CNY 1.64, with a price-to-earnings (P/E) ratio of 5.00 [4]. - The company maintains a dividend payout ratio of 18.34% for 2024, translating to a dividend yield of 3.7% as of March 28 [1].