CNCEC(SH:601117) Changjiang Securities·2025-09-07 09:46Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a slight decline in total revenue for the first half of the year, amounting to 90.72 billion yuan, a year-on-year decrease of 0.35%. However, the net profit attributable to shareholders increased by 9.26% to 3.102 billion yuan [5][10]. - The company's chemical engineering business saw a revenue increase of 1.21% to 74.812 billion yuan, accounting for 83.06% of total revenue, while infrastructure and environmental governance revenues declined significantly [10]. - The gross profit margin slightly improved, with a comprehensive gross margin of 9.58%, an increase of 0.19 percentage points, primarily due to the improved gross margin in the chemical engineering sector [10]. - Non-recurring gains significantly increased, contributing to the growth in net profit despite a decline in the net profit margin [10]. - The company has shown a good operating quality with an improved cash collection ratio and a decrease in the debt-to-asset ratio [10]. Summary by Sections Financial Performance - Total revenue for the first half of the year was 90.72 billion yuan, down 0.35% year-on-year, while net profit was 3.102 billion yuan, up 9.26% [5][10]. - The gross profit margin for the first half was 9.58%, reflecting a slight increase due to better performance in the chemical engineering business [10]. Business Segments - Chemical engineering revenue grew by 1.21% to 74.812 billion yuan, while infrastructure revenue fell by 10.02% to 9.11 billion yuan, and environmental governance revenue dropped by 54.58% to 0.511 billion yuan [10]. - The company’s overseas revenue increased by 28.75% to 26 billion yuan, representing 30% of total revenue [10]. Future Outlook - The company plans to achieve a new contract signing target of 370 billion yuan for 2025, having completed 60.77% of this target by July 2025 [10]. - Key projects in chemical production and coal chemical industries are expected to drive future performance improvements [10].