CPEC(SH:600339) Tianfeng Securities·2025-08-22 09:36Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7]. Core Views - The company reported a revenue of 36.287 billion yuan for the first half of 2025, representing a year-on-year increase of 12.18%, while the net profit attributable to shareholders decreased by 10.87% to 470 million yuan [1]. - The company has a strong order backlog of approximately 170 billion yuan, providing solid project resource support for sustainable development despite a slight decrease in new contracts signed [1]. - The international market and emerging sectors have shown good growth, with new contracts in the international market reaching 23.182 billion yuan, accounting for 31.58% of total new contracts, and an increase of 9.86% year-on-year [2]. - The company is actively pursuing technological advancements and digital transformation, achieving significant contributions from its technological efforts, with a contract amount of 15.6 billion yuan attributed to technology [3]. Financial Performance - The company’s operating cash flow improved significantly, with a net cash flow from operating activities of -1.533 billion yuan, an increase of 5.520 billion yuan year-on-year [1]. - The forecast for net profit attributable to shareholders has been revised downwards for 2025, 2026, and 2027 to 658 million yuan, 739 million yuan, and 800 million yuan respectively [4]. - The company’s revenue is projected to grow at a rate of 4.54% in 2025, with a slight decline in profit margins anticipated [11]. Order and Contract Insights - The company signed new contracts worth 73.401 billion yuan in the first half of 2025, a decrease of 3.10% year-on-year, but the order backlog remains robust [1]. - Emerging business sectors achieved new contracts totaling 20.596 billion yuan, representing 28.06% of total new contracts and a year-on-year growth of 16.56% [2].