Changjiang Securities·2025-09-07 09:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company experienced a slight decline in revenue and net profit in the first half of the year, with total revenue of 511.09 billion yuan, down 5.93% year-on-year, and a net profit attributable to shareholders of 11.83 billion yuan, down 17.17% year-on-year [2][6] - Despite the overall decline, the company achieved stable growth in overseas contracts, with new contracts signed amounting to 1,108.69 billion yuan, a year-on-year increase of 2.8%, and overseas business contracts reaching 124.87 billion yuan, up 51.6% year-on-year [12] - The company is focusing on improving operational quality and is optimistic about the revaluation of its mineral resources, having established five modern mines that are operating well [12] Summary by Sections Financial Performance - The company reported a total revenue of 511.09 billion yuan, a decrease of 5.93% year-on-year, primarily due to a decline in infrastructure construction, which accounted for 436.25 billion yuan, down 7.78% [12] - The gross profit margin slightly decreased to 8.73%, with the infrastructure construction margin at 7.37%, down 0.53 percentage points [12] - The net profit margin decreased to 2.31%, down 0.31 percentage points year-on-year, with a non-recurring net profit margin of 2.01%, down 0.40 percentage points [12] Operational Highlights - The cash collection ratio improved to 88.47%, up 0.36 percentage points year-on-year, although the net cash outflow from operating activities was 79.63 billion yuan, an increase of 10.30 billion yuan year-on-year [12] - The company has a total of 5 modern mines in operation, producing various metals including copper, cobalt, molybdenum, lead, zinc, and silver, with stable production levels [12] Market Position - The company’s overseas revenue showed resilience, with a year-on-year growth of 8.34% in foreign markets, contrasting with a 6.83% decline in domestic revenue [12] - The company is well-positioned to capitalize on the growing demand for mineral resources and is actively expanding its international footprint [12]