Hua Yuan Zheng Quan·2025-09-02 23:41Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's performance is under short-term pressure, but order growth shows resilience [5] - Revenue for the first half of 2025 was 511.09 billion yuan, down 5.93% year-on-year, with net profit attributable to shareholders decreasing by 17.17% [6] - The company has seen a steady increase in new contracts, with a total of 1,108.69 billion yuan signed in the first half of 2025, up 2.8% year-on-year [6] Financial Performance Summary - The company reported a revenue of 5,110.93 billion yuan in H1 2025, a decrease of 5.93% year-on-year, with net profits of 118.27 billion yuan and 102.68 billion yuan for attributable and non-attributable profits respectively, down 17.17% and 21.59% [6] - The revenue breakdown for H1 2025 includes infrastructure construction (436.25 billion yuan, -7.78%), design consulting (8.91 billion yuan, -0.60%), equipment manufacturing (13.75 billion yuan, +14.39%), and real estate development (15.61 billion yuan, +7.83%) [6] - The company’s gross profit margin for H1 2025 was 8.53%, a decrease of 0.30 percentage points year-on-year [6] Market Performance - The company’s new contract value in H1 2025 was 1,108.69 billion yuan, with significant contributions from overseas markets, particularly in railway, construction, and municipal projects [6] - The company’s cash flow remains a concern, with a net cash outflow from operating activities of 79.63 billion yuan in H1 2025, an increase of 10.30 billion yuan year-on-year [6] Earnings Forecast and Valuation - The forecasted net profit for the company from 2025 to 2027 is 28.7 billion yuan, 29.7 billion yuan, and 30.8 billion yuan respectively, with year-on-year growth rates of 2.76%, 3.47%, and 3.73% [6][8] - The current stock price corresponds to a price-to-earnings ratio (P/E) of 4.86 for 2025, 4.70 for 2026, and 4.53 for 2027 [6][8]