中交设计（600720）：减值冲回提升业绩，海外拓展未来可期

Investment Rating - The investment rating for the company is "Buy" and is maintained [11] Core Views - The company reported a revenue of 1.674 billion yuan in the first quarter, a year-on-year decrease of 21.77%, while the net profit attributable to shareholders was 94 million yuan, an increase of 1.91% year-on-year [2][8] - The decline in revenue is primarily due to the divestment of the engineering general contracting business, while the net profit remained stable due to credit impairment reversals [14] - The company has a robust backlog of contracts and has seen significant growth in overseas business, with new overseas contracts amounting to 218 million USD, a year-on-year increase of 81.6% [14] - The company is focusing on new industries such as renewable energy and low-altitude economy, which, combined with its overseas expansion, is expected to drive net profit growth in the coming years [14] Summary by Sections Financial Performance - In Q1, the company achieved a gross margin of 14.83%, a decrease of 1.16 percentage points year-on-year, with a net profit margin of 5.61%, an increase of 1.30 percentage points year-on-year [14] - The operating cash flow showed a net outflow of 1.073 billion yuan, which is an increase in outflow of 76 million yuan year-on-year, while the collection ratio improved to 120.32%, up 15.29 percentage points year-on-year [14] Contract and Business Development - The company signed new contracts worth 17.28 billion yuan in 2024, with domestic contracts at 15.73 billion yuan and overseas contracts at 218 million USD [14] - The company is recognized as a leader in the design industry, with significant advantages in overseas markets due to its parent company, China Communications Construction Company [14] Future Outlook - The company is expected to achieve net profits of 1.797 billion yuan, 1.890 billion yuan, and 2.069 billion yuan for the years 2025 to 2027, corresponding to current price-to-earnings ratios of 10.10, 9.60, and 8.77 respectively [14]