CNCEC(SH:601117) NORTHEAST SECURITIES·2025-09-10 09:06Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [5]. Core Views - The company reported a stable performance with overseas business showing significant growth, achieving a revenue of 90.7 billion yuan in H1 2025, a slight decrease of 0.3% year-on-year, while net profit attributable to shareholders increased by 9% to 3.1 billion yuan [1][2]. - The gross margin improved in the chemical engineering and infrastructure sectors, with overseas revenue growing rapidly by 29% year-on-year [2]. - New contract signings showed a positive trend, with a total of 224.8 billion yuan in new contracts signed from January to July 2025, reflecting a 4.4% increase year-on-year [2]. Financial Performance Summary - In H1 2025, the company achieved revenues of 90.7 billion yuan, with a net profit of 3.1 billion yuan, and a non-recurring net profit of 3 billion yuan [1]. - The gross margin for H1 2025 was 9.6%, an increase of 0.2 percentage points year-on-year, with domestic and overseas gross margins at 9.9% and 8.9%, respectively [3]. - The company expects revenues for 2025-2027 to be 196.3 billion, 208.5 billion, and 222.6 billion yuan, with year-on-year growth rates of 5.18%, 6.21%, and 6.79% respectively [3][4]. Earnings Forecast - The forecasted net profit for 2025-2027 is 6.25 billion, 6.67 billion, and 7.24 billion yuan, with corresponding year-on-year growth rates of 9.82%, 6.72%, and 8.67% [3][4]. - The earnings per share (EPS) are projected to be 1.02, 1.09, and 1.19 yuan, with price-to-earnings (PE) ratios of 7.43, 6.96, and 6.41 respectively [3][4]. Market Data - As of September 9, 2025, the company's closing price was 7.60 yuan, with a market capitalization of approximately 46.41 billion yuan [5]. - The stock has a 12-month price range of 6.22 to 8.76 yuan, indicating potential for growth within the specified range [5]. Conclusion - The report highlights the company's robust overseas performance and improving profitability metrics, supporting the "Accumulate" rating and suggesting a favorable outlook for future growth [3][5].