Shanghai Geoharbour Construction (605598) 天风证券·2025-05-07 01:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [6][18]. Core Views - The company has seen a significant increase in overseas orders, particularly in Southeast Asia and the Middle East, contributing to a 29.25% year-on-year revenue growth in Q1 [1]. - The company is investing in perovskite solar cells to explore new growth avenues, aiming to expand its market presence in emerging markets like the Philippines and Kenya [4]. - Despite a decline in domestic business margins, the company has achieved a 93% year-on-year increase in new contracts signed in 2024 [2]. Financial Performance Summary - In Q1 2025, the company reported revenues of 372 million, a 29.25% increase year-on-year, with a net profit of 36 million, up 18.59% [1]. - For the full year 2024, the company expects revenues of 1.297 billion, a slight increase of 1.51%, but a significant drop in net profit by 46.86% to 93 million due to declining gross margins and increased costs [1][5]. - The company’s gross margin for 2024 is projected to be 29.59%, down 4.67 percentage points year-on-year, with a notable decline in Q4 2024 [2][3]. Order and Revenue Trends - The company signed new contracts worth 2.053 billion in 2024, reflecting a 93% increase compared to the previous year [2]. - Revenue from the foundation treatment and pile foundation engineering segments for 2024 is expected to be 824 million and 430 million, respectively, with the latter showing a 55.10% increase [2]. Cash Flow and Expenses - The company experienced a cash flow from operations (CFO) of -83 million in 2024, a decrease of 217 million year-on-year, but a positive CFO of 45 million in Q1 2025 [3]. - The operating expense ratio for 2024 is projected to be 17.36%, an increase of 1.62 percentage points year-on-year, primarily due to rising management costs from overseas business growth [3].