CSCEC(SH:601668) Soochow Securities·2025-11-04 06:35Investment Rating - The report maintains a "Buy" rating for China State Construction Engineering Corporation (601668) [1] Core Views - The Q3 earnings of the company are under pressure, with a notable decline in revenue and net profit, primarily due to the ongoing adjustment in the real estate market and a slowdown in infrastructure investment growth [7] - Despite the challenges, the company has shown strong performance in overseas revenue and specific segments, with new contract signings in industrial plants and energy engineering experiencing significant growth [7] - The company is expected to maintain a stable dividend policy, with projected earnings per share (EPS) for 2025 at 1.11 yuan, corresponding to a price-to-earnings (P/E) ratio of 4.87 [1][7] Financial Performance Summary - For the first three quarters of 2025, the company reported total revenue of 155.82 billion yuan, a year-on-year decrease of 4.2%, and a net profit attributable to shareholders of 38.18 billion yuan, down 3.8% [7] - In Q3 alone, revenue was 44.99 billion yuan, reflecting a 6.6% decline year-on-year, while net profit dropped by 24.1% to 7.78 billion yuan [7] - The gross margin for Q3 was 7.0%, a decrease of 0.4 percentage points year-on-year, primarily impacted by the real estate development business [7] Order and Contract Performance - The company achieved new contract signings of 3.29 trillion yuan in the first three quarters, representing a year-on-year increase of 1.4%, with the construction business contributing 3.04 trillion yuan, up 1.7% [7] - Notable growth was observed in specific sectors, with industrial plant contracts increasing by 23.0% to 640.5 billion yuan, and energy engineering contracts rising by 31.2% to 441.9 billion yuan [7] Cash Flow and Financial Stability - The company reported a net cash outflow from operating activities of 69.5 billion yuan for the first three quarters, showing a slight improvement compared to the previous year [7] - The asset-liability ratio stood at 76.1% at the end of Q3, reflecting a year-on-year decrease of 0.1 percentage points [7]