Investment Rating - The report maintains a "Buy" rating for China Energy Construction (3996.HK) [1] Core Views - The company has demonstrated stable operations with rapid growth in its new energy business, achieving a revenue of 436.71 billion CNY and a net profit of 8.4 billion CNY in 2024, reflecting a year-on-year increase of 7.6% and 5.1% respectively [4][5] - The new energy and integrated smart energy sectors have shown significant revenue growth, contributing to the overall revenue increase and optimization of the business structure [5] - The company has improved its cash flow management, with a net operating cash inflow of 11.03 billion CNY in 2024, an increase of 15.4 billion CNY compared to the previous year [8] Financial Performance Summary - In 2024, the company achieved operating revenue of 436.71 billion CNY, a year-on-year increase of 7.6%, and a net profit of 8.4 billion CNY, up 5.1% [4] - For Q1 2025, the company reported operating revenue of 100.37 billion CNY, a 3.0% increase year-on-year, and a net profit of 1.61 billion CNY, which is an 8.8% increase [4] - The gross margin for 2024 was 12.4%, slightly down from the previous year, while the net margin was 2.7% [6] Business Segments and Regional Performance - The new energy and integrated smart energy sectors generated revenue of 139.76 billion CNY in 2024, a 13.9% increase year-on-year [5] - The company’s engineering construction, investment operation, industrial manufacturing, and surveying design and consulting segments reported revenues of 366.82 billion CNY, 36.13 billion CNY, 32.22 billion CNY, and 20.83 billion CNY respectively in 2024 [5] - Domestic and overseas revenues for 2024 were 380.57 billion CNY and 56.14 billion CNY, reflecting increases of 8.8% and 0.03% respectively [5] Contract and Order Growth - The company signed new contracts worth 1,408.88 billion CNY in 2024, a 9.8% increase year-on-year, with significant contributions from engineering construction and surveying design [7] - In Q1 2025, new contracts amounted to 388.9 billion CNY, a 5.8% increase year-on-year, with notable growth in the new energy sector [7] Profitability and Valuation - The report projects a decrease in net profit forecasts for 2025 and 2026 to 9.1 billion CNY and 9.6 billion CNY respectively, reflecting adjustments due to market conditions [8] - The estimated P/E ratio for 2025 is 4.2, indicating a favorable valuation compared to historical performance [9]
中国能源建设（03996）：2024年年报及2025年一季报点评：经营稳健，新能源业务快速增长