STEC(SH:600820) CAITONG SECURITIES·2025-08-28 11:43Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company's revenue from its main construction business has declined, but investment income has supported performance improvement in Q2 [1] - The company reported a 21.47% year-on-year decline in revenue for the first half of 2025, with a net profit decrease of 7.40% [8] - Despite the decline in construction revenue, new contract signing remains stable, with a slight increase of 0.18% in new orders for the first half of 2025 [8] - The company expects net profit for 2025-2027 to be 2.902 billion, 3.060 billion, and 3.324 billion yuan respectively, corresponding to PE ratios of 6.9, 6.5, and 6.0 [8] Financial Performance Summary - For the first half of 2025, the company achieved revenue of 22.021 billion yuan, down 21.47% year-on-year, and a net profit of 727 million yuan, down 7.40% year-on-year [8] - The second quarter alone saw revenue of 11.471 billion yuan, a decrease of 17.56% year-on-year, but net profit increased by 15.86% to 396 million yuan [8] - The company plans to distribute a cash dividend of 252 million yuan for the first half of 2025, with a cash dividend ratio of approximately 34.61% [8] - The company's sales gross margin for the first half of 2025 was 15.39%, an increase of 0.45 percentage points year-on-year [8] - Investment income significantly increased by 196.56% to 307 million yuan, accounting for 1.40% of revenue [8] Revenue and Profit Forecast - Projected revenue for 2025 is 68.371 billion yuan, with a slight decline of 0.6% year-on-year, followed by a growth of 2.3% in 2026 and 5.3% in 2027 [7] - The expected net profit for 2025 is 2.902 billion yuan, with a growth forecast of 2.1% in 2025, 5.5% in 2026, and 8.6% in 2027 [7]