CSCEC(SH:601668) Hua Yuan Zheng Quan·2025-09-01 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is experiencing revenue pressure but is seeing improvements in profitability supported by infrastructure projects [5] - The revenue for the first half of 2025 was 1,108.31 billion yuan, a year-on-year decrease of 3.17%, while the net profit attributable to shareholders was 30.40 billion yuan, reflecting a growth of 3.24% [6] - The company is focusing on strategic emerging industries, which contributed 91.6 billion yuan in revenue, providing incremental momentum for business structure optimization [6] Financial Performance Summary - The company achieved a gross profit margin of 9.43% in the first half of 2025, with a net profit margin of 3.63% [6] - The total signed construction contracts amounted to 2,326.5 billion yuan, a year-on-year increase of 1.7%, with domestic contracts growing by 2.2% [6] - The company’s cash flow improved, with a net cash outflow from operating activities of 82.83 billion yuan, which was 25.94 billion yuan less than the previous year [6] Revenue and Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 47.5 billion, 49.4 billion, and 51.2 billion yuan, with respective growth rates of 2.86%, 3.88%, and 3.73% [7] - The projected price-to-earnings ratios for the same period are 4.86, 4.68, and 4.51 times [7] Market Dynamics - The infrastructure sector continues to grow, while the real estate business is undergoing adjustments [6] - The company’s strategic focus on high-demand segments, such as energy and municipal engineering, is expected to drive future growth [6]