CNCEC(SH:601117) Guohai Securities·2025-09-10 07:10Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's operating performance remains stable, with a continuous increase in new contracts signed [4][6] - In the first half of 2025, the company achieved operating revenue of 90.72 billion yuan, a year-on-year decrease of 0.35%, while the net profit attributable to shareholders increased by 9.26% to 3.10 billion yuan [4] - The company has a strong advantage in its main business, with new contracts in the chemical engineering sector exceeding 206 billion yuan, marking a significant milestone [7] Financial Performance - In Q2 2025, the company reported revenue of 46.07 billion yuan, a year-on-year increase of 0.44%, and a net profit of 1.66 billion yuan, up 2.12% year-on-year [4][11] - The gross profit margin for Q2 2025 was 9.85%, a decrease of 0.90 percentage points year-on-year, while the net profit margin increased by 0.02 percentage points to 3.88% [4][11] - The company’s return on equity (ROE) for Q2 2025 was 2.56%, showing a year-on-year decrease of 0.16 percentage points [4] Segment Performance - In the first half of 2025, the chemical engineering segment generated revenue of 74.8 billion yuan, a year-on-year increase of 1.21%, while the infrastructure segment saw a revenue decline of 10.02% to 9.1 billion yuan [5] - The environmental governance segment experienced a significant revenue drop of 54.58%, while the modern service industry grew by 7.81% to 0.8 billion yuan [5] Contract Signing and Business Development - The total new contracts signed in the first half of 2025 amounted to 206.09 billion yuan, representing a year-on-year increase of 1.24% [6] - Domestic contracts accounted for 79.87% of the total, with a value of 164.61 billion yuan, while international contracts contributed 20.13% with 41.48 billion yuan [6] Future Outlook - The company is expected to achieve operating revenues of 203.6 billion yuan, 218.2 billion yuan, and 228.5 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 6.2 billion yuan, 6.9 billion yuan, and 7.5 billion yuan [13][16] - The company is positioned as a leader in the chemical engineering sector, with ongoing projects expected to drive a second growth curve [13]