CNECC(601611) Changjiang Securities·2025-05-09 10:18Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company reported a total operating revenue of 1135.41 billion yuan for 2024, representing a year-on-year growth of 3.80%. The net profit attributable to the parent company was 20.64 billion yuan, a slight increase of 0.07%. The non-recurring net profit was 19.15 billion yuan, up by 12.11% year-on-year. For Q1 2025, the total operating revenue was 295.49 billion yuan, a year-on-year increase of 1.77%, while the net profit attributable to the parent company decreased by 1.01% to 5.51 billion yuan [2][8]. Summary by Sections Revenue and Orders - The company achieved stable revenue growth in 2024, with new contracts growing faster than revenue in Q1 2025. In Q4 2024, new contracts amounted to 556.33 billion yuan, a year-on-year increase of 1.3%, while Q1 2025 saw new contracts of 541.75 billion yuan, up by 30.68% year-on-year. The company successfully entered new fields such as offshore wind power and energy storage, enhancing both quantity and quality of orders [14]. Profitability and Margins - The overall profitability showed a slight decline, with the comprehensive gross margin for 2024 at 11.72%, an increase of 0.37 percentage points year-on-year. The expense ratio rose slightly to 7.12%, with net profit margin decreasing to 1.82%, down by 0.07 percentage points year-on-year. In Q1 2025, the comprehensive gross margin was 8.94%, up by 0.41 percentage points, while the net profit margin was 1.87%, a decrease of 0.05 percentage points year-on-year [14]. Cash Flow - The company experienced a significant increase in cash outflow from operating activities, with a net outflow of 33.40 billion yuan in 2024, primarily due to increased payments to downstream entities. The cash collection ratio for 2024 was 82.77%, down by 3.57 percentage points year-on-year. In Q1 2025, the net cash outflow was 101.95 billion yuan, with a cash collection ratio of 76.34%, up by 7.04 percentage points year-on-year [14]. Market Conditions - The company has seen a favorable market environment, with the approval of over 10 nuclear units for four consecutive years. In April 2025, five nuclear projects were approved, totaling 10 units, indicating a stable approval pace. The estimated total investment for these new units exceeds 200 billion yuan, which is expected to benefit the company significantly [14].