CRCC(SH:601186) Guotou Securities·2025-03-31 07:36Investment Rating - The investment rating for the company is "Buy-A" with a target price of 9.68 CNY over the next six months [4]. Core Views - The company reported a total revenue of 1.07 trillion CNY for 2024, a year-over-year decrease of 6.22%, and a net profit attributable to shareholders of 22.215 billion CNY, down 14.87% year-over-year. The fourth quarter showed a revenue of 309.046 billion CNY, a decline of 6.78%, but a net profit of 6.520 billion CNY, which is an increase of 2.36% year-over-year [1][2]. - The company has seen a narrowing decline in net profit in Q4, primarily due to reduced losses from investment income and a significant decrease in minority interests [2]. - The company has a solid order backlog with a total of 7.68 trillion CNY in uncompleted contracts, which is approximately 7.2 times its revenue for 2024, providing a strong foundation for future revenue growth [8]. Summary by Sections Financial Performance - The company experienced a decline in overall revenue growth, attributed to industry investment slowdown and limited payment capacity of downstream clients. Revenue from various segments showed declines, with engineering contracting at 931.245 billion CNY (-5.68% YoY), design consulting at 18.024 billion CNY (-3.89% YoY), industrial manufacturing at 23.395 billion CNY (-2.52% YoY), and real estate development at 71.890 billion CNY (-13.67% YoY). However, overseas revenue grew to 65.899 billion CNY, an increase of 9.27% YoY [2][3]. - The gross profit margin for 2024 was 10.27%, a decrease of 0.12 percentage points YoY, with a net profit margin of 2.54%, down 0.30 percentage points YoY. The company faced increased financial expenses, which rose by 70.47% YoY [3]. Future Outlook - The company is expected to see revenue growth in the coming years, with projected revenues of 1.14 trillion CNY, 1.21 trillion CNY, and 1.27 trillion CNY for 2025, 2026, and 2027 respectively, representing year-over-year growth rates of 7.0%, 6.0%, and 5.0%. Net profits are forecasted to be 23.8 billion CNY, 25.3 billion CNY, and 26.8 billion CNY for the same years [9][10].