ACEG(SH:600502) Changjiang Securities·2025-03-31 13:41Investment Rating - The investment rating for the company is "Buy" and is maintained [11] Core Views - The company achieved a total revenue of 96.502 billion yuan in 2024, representing a year-on-year growth of 5.76%. However, the net profit attributable to shareholders decreased by 13.43% to 1.345 billion yuan. The net profit after deducting non-recurring items also saw a decline of 11.55% to 1.258 billion yuan [2][8] - In the fourth quarter alone, the company reported a revenue of 42.539 billion yuan, which is a significant increase of 35.85% year-on-year. Nevertheless, the net profit for this quarter fell by 21.85% to 0.383 billion yuan, while the net profit after deducting non-recurring items increased by 23.71% to 0.398 billion yuan [2][8] Summary by Sections Revenue and Orders - The company's construction business generated a revenue of 76.344 billion yuan, marking a year-on-year increase of 6.57%. The growth rate for infrastructure construction outpaced that of real estate construction, with increases of 10.6% and 1.58% respectively. The total number of new contracts signed was 474, amounting to 155.077 billion yuan, which is a 2.65% increase year-on-year. Notably, new contracts in road and bridge, water conservancy, and port and shipping engineering saw substantial growth rates of 63.61%, 160.54%, and 21.78% respectively [11] Profitability - The overall gross profit margin for the company in 2024 was 12.40%, a slight decrease of 0.04 percentage points compared to 2023. The gross profit margin for the construction business improved, while the real estate sector experienced a slight decline. The gross profit margin for the fourth quarter was 12.63%, down 1.41 percentage points year-on-year [11] Cash Flow and Financial Health - The net cash inflow from operating activities for the year was 1.215 billion yuan, which is a decrease of 2.456 billion yuan compared to the previous year. The cash collection ratio was 92.23%, down 0.88 percentage points year-on-year. In the fourth quarter, the net cash inflow from operating activities was 6.470 billion yuan, an increase of 2.911 billion yuan year-on-year, with a cash collection ratio of 88.99%, up 21.40 percentage points [11] Future Outlook - The report highlights potential investment opportunities for local state-owned construction enterprises amid government efforts to address debt and stimulate fiscal policy. The anticipated implementation of more proactive fiscal policies is expected to alleviate local government debt pressures and enhance central investment efforts, which could lead to increased orders and performance for the company [11]