CSCEC(601668) EBSCN·2025-04-18 02:40Investment Rating - The report maintains a "Buy" rating for China State Construction Engineering Corporation (601668.SH) [1] Core Views - The company experienced pressure on its annual performance, with a significant increase in dividend payout ratio [1] - In 2024, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of CNY 218.71 billion, CNY 46.2 billion, and CNY 41.6 billion, respectively, representing year-on-year declines of 3.5%, 14.9%, and 14.3% [5] - The company signed new contracts worth CNY 450.27 billion in 2024, a year-on-year increase of 4.1%, with notable growth in industrial buildings and energy sectors [6] - The company’s overseas revenue grew at a faster pace, with strategic emerging industries accounting for 10% of total revenue [7] - The company improved cash flow significantly in Q4 2024, with a cash dividend payout ratio rising to 24% [8] - The report projects a gradual recovery in operational performance, maintaining the "Buy" rating despite ongoing challenges in the real estate sector [9] Summary by Sections Financial Performance - In 2024, the company reported a revenue of CNY 218.71 billion, a decrease of 3.5% year-on-year, and a net profit of CNY 46.2 billion, down 14.9% [5] - The fourth quarter saw revenue of CNY 56.06 billion, with net profit dropping 38.9% year-on-year [5] Contract and Revenue Growth - New contracts signed in 2024 totaled CNY 450.27 billion, with a 4.1% increase year-on-year [6] - The company’s new contracts in the industrial building sector rose by 16.0% to CNY 72.16 billion [6] Cash Flow and Dividends - The company reported a significant improvement in cash flow in Q4 2024, with operating cash inflow of CNY 92.78 billion, an increase of CNY 65.4 billion year-on-year [8] - The dividend payout ratio increased to 24.3%, with a dividend of CNY 2.715 per 10 shares [8] Future Outlook - The report forecasts a gradual recovery in performance, with net profit estimates for 2025 and 2026 adjusted to CNY 47.49 billion and CNY 48.67 billion, respectively [9]