CCCCDC(SH:600720) EBSCN·2025-04-30 13:14Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has optimized its business structure, leading to a slight increase in gross margin despite a decline in revenue [6][7] - The company is focusing on strategic emerging industries, including new energy, low-altitude economy, and underground space, to accelerate its transformation [10][11] - The controlling shareholder's plan to increase holdings reflects confidence in the company's future development [9] Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 12.434 billion yuan, a decrease of 8.0% year-on-year, and a net profit attributable to shareholders of 1.751 billion yuan, down 0.8% [5] - For Q1 2025, the company reported operating revenue of 1.667 billion yuan, a decline of 21.8% year-on-year, but a net profit increase of 1.9% to 90 million yuan [5][6] Business Structure and Strategy - The company has seen a significant increase in overseas business, with revenue from international operations growing by 67.4% year-on-year [6] - New contracts signed in 2024 totaled 17.28 billion yuan, with a notable increase in overseas contracts, which reached 218 million USD, up 81.6% [8] Cost Management and Profitability - The company improved its gross margin to 29.4% in 2024, up 2.23 percentage points year-on-year, due to better cost control and an increase in investment income [7] - In Q1 2025, the gross margin was 14.8%, with a net margin of 5.9%, reflecting ongoing efforts to manage costs effectively [7] Future Outlook - The company has sufficient contracts on hand and is actively expanding into new strategic areas, which is expected to support future growth [11] - Profit forecasts for 2025 and 2026 have been adjusted to 1.812 billion yuan and 1.898 billion yuan, respectively, reflecting a cautious outlook due to local government financial constraints [11]