CNECC(601611) GOLDEN SUN SECURITIES·2025-05-07 10:23Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's operational performance is showing steady growth, with a revenue forecast of 113.5 billion yuan for 2024, representing a year-on-year increase of 3.8%. The net profit attributable to shareholders is expected to be 2.06 billion yuan, with a year-on-year growth of 12% for the non-recurring profit [1][2] - The nuclear power sector continues to benefit from a favorable industry environment, with the company being a leader in nuclear power engineering in China. The new contracts signed for nuclear power engineering in 2024 reached 55.1 billion yuan, a 44% increase year-on-year [3] Summary by Sections Financial Performance - In 2024, the company achieved a comprehensive gross margin of 11.7%, an increase of 0.37 percentage points year-on-year. The gross margins for nuclear engineering, civil engineering, and other businesses were 13.4%, 9.8%, and 17.3%, respectively [2] - The company reported a net profit margin of 1.82% for 2024, a decrease of 0.07 percentage points year-on-year. The operating cash flow showed a net outflow of 3.34 billion yuan, indicating ongoing cash flow pressure [2] Business Segments - The revenue from nuclear power engineering, civil engineering, and other businesses for 2024 is projected to be 32.2 billion yuan, 69.3 billion yuan, and 11.2 billion yuan, respectively. The nuclear power engineering segment is expected to grow rapidly [1] - The company has a robust order backlog of 277.8 billion yuan, which is 2.4 times its annual revenue, ensuring stable future profitability [1] Future Projections - The company aims to achieve new contracts worth 165.8 billion yuan in 2025, a 1.4% increase year-on-year, and revenue of 117.7 billion yuan, representing a year-on-year growth of 3.7% [1] - Forecasted net profits for 2025-2027 are 2.32 billion yuan, 2.60 billion yuan, and 2.91 billion yuan, with respective growth rates of 13%, 12%, and 12% [3]