ACEG(SH:600502) Changjiang Securities·2025-05-05 11:13Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company achieved a revenue of 14.542 billion yuan in Q1 2025, representing a year-on-year growth of 7.42%. The net profit attributable to shareholders was 311 million yuan, a slight increase of 0.31% year-on-year, while the net profit after deducting non-recurring items decreased by 4.86% to 271 million yuan [2][8][13]. - The company experienced a significant increase in new orders for engineering construction, totaling 39.785 billion yuan, which is a 2.07% year-on-year growth. Notably, the infrastructure segment saw an 11.91% increase, with highway and bridge projects showing remarkable growth of 318.25% [13]. - The overall gross profit margin for Q1 was 12.43%, a slight decline of 0.55 percentage points year-on-year. However, the expense ratio decreased by 0.34 percentage points to 9.13% [13]. - Cash flow from operating activities improved, with a net outflow of 2.640 billion yuan, which is 561 million yuan less than the previous year. The collection ratio was 150.64%, down by 5.78 percentage points year-on-year [13]. - The company is focusing on optimizing its business structure, with ongoing investments in highways, new energy, and intelligent manufacturing, which are expected to enhance profitability [13]. - The report highlights potential investment opportunities for local construction state-owned enterprises due to government policies aimed at increasing fiscal spending and managing local government debt [13]. Summary by Sections Financial Performance - In Q1 2025, the company reported total revenue of 14.542 billion yuan, a 7.42% increase year-on-year, and a net profit of 311 million yuan, up 0.31% year-on-year. The net profit after non-recurring items was 271 million yuan, down 4.86% year-on-year [2][8][13]. Order Growth - The company secured new engineering orders worth 39.785 billion yuan in Q1 2025, marking a 2.07% increase year-on-year. The infrastructure segment grew by 11.91%, with highway and bridge projects experiencing significant growth [13]. Profitability Metrics - The gross profit margin for Q1 was 12.43%, down 0.55 percentage points year-on-year. The expense ratio decreased to 9.13%, reflecting a reduction in various expense categories [13]. Cash Flow and Financial Health - The company improved its cash flow situation, with a net outflow of 2.640 billion yuan, which is less than the previous year. The asset-liability ratio decreased to 85.62% [13]. Strategic Focus - The company is diversifying its business into highways, new energy, and intelligent manufacturing, which are expected to enhance its competitive edge and profitability [13].