Tianfeng Securities·2025-04-28 09:14Investment Rating - The report maintains a "Buy" rating for China Communications Construction Company (CCCC) [4][7][19] Core Views - CCCC has released a three-year cash dividend plan, indicating a commitment to enhancing shareholder returns. The annual cash dividend will account for no less than 20% of the net profit attributable to the parent company, ensuring a minimum level compared to the previous year [4] - The company has shown resilience in its overseas business, with a notable increase in new orders, particularly in emerging sectors such as energy and water conservancy, which have seen year-on-year growth of 185.4% and 29.5%, respectively [2] - Despite a slight decline in revenue and profit in Q1 2025, the company remains a leader in the construction industry, with stable operational metrics and a strong performance in major urban areas [1][3] Summary by Sections Financial Performance - In Q1 2025, CCCC reported revenue of 154.6 billion, a year-on-year decrease of 12.6%, and a net profit of 5.47 billion, down 11% year-on-year. The decrease in performance was slightly mitigated by a recovery in credit impairment and asset disposals [1] - The gross margin for Q1 2025 was 11.6%, a decrease of 0.35 percentage points year-on-year, while the net profit margin improved slightly to 4.34%, up 0.09 percentage points year-on-year [3] Order Growth - CCCC signed new contracts worth 553 billion in Q1 2025, representing a year-on-year growth of 9.02%, achieving 27% of its annual target. The overseas business contributed significantly, with new orders amounting to 106.9 billion, a 17.1% increase year-on-year [2] Dividend Policy - The company has announced a cash dividend plan for 2025-2027, ensuring that the total annual cash dividend will not be less than 20% of the net profit attributable to the parent company, enhancing investor returns [4] Valuation Metrics - The projected net profit for CCCC from 2025 to 2027 is estimated at 25 billion, 27.1 billion, and 29.5 billion, respectively, with corresponding price-to-earnings ratios of 5.8, 5.4, and 4.9 [4][6]