CSCEC(SH:601668) Changjiang Securities·2025-05-07 14:15Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company demonstrated steady revenue growth in Q1 2025, with operating income reaching 555.34 billion yuan, a year-on-year increase of 1.10%. The net profit attributable to shareholders was 15.01 billion yuan, up 0.61% year-on-year [2][6]. - The company is focusing on enhancing cash flow management, with a reduction in cash outflow and an improved cash collection ratio [11]. - The company is positioned as a market leader in value management, emphasizing shareholder returns through a significant increase in dividend payout ratio [11]. Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved operating revenue of 555.34 billion yuan, a 1.10% increase year-on-year. The net profit attributable to shareholders was 15.01 billion yuan, reflecting a 0.61% growth. The net profit after deducting non-recurring items was 14.85 billion yuan, up 0.75% year-on-year [2][6]. - The gross margin for the company was 7.85%, a decrease of 0.24 percentage points year-on-year. The net profit margin remained stable at 2.70% [11]. Business Segments - Revenue from the housing construction segment was 364.9 billion yuan, down 0.2% year-on-year. Infrastructure revenue was 128.3 billion yuan, up 0.5%. Real estate development revenue increased by 15.5% to 53.7 billion yuan [11]. - The company signed new contracts worth 1,270.2 billion yuan in Q1 2025, a 6.9% increase year-on-year, with significant growth in affordable housing and municipal projects [11]. Cash Flow and Financial Health - The company reported a net cash outflow from operating activities of 95.85 billion yuan, a reduction of 7.43 billion yuan year-on-year. The cash collection ratio improved to 100.79% [11]. - The asset-liability ratio increased by 0.90 percentage points to 75.67% year-on-year, indicating a focus on managing financial leverage [11]. Market Position and Valuation - The company is recognized as a benchmark in market capitalization management, with a strong dividend yield of 5%, providing a solid safety margin for investors [11]. - The company is expected to benefit from domestic demand policies, particularly in the real estate and infrastructure sectors, which may lead to valuation recovery [11].