ACEG(SH:600502) Tianfeng Securities·2025-11-04 09:45Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Views - The company experienced a decline in revenue and profit in the first three quarters of 2025, with revenue of 45.026 billion yuan, down 16.56% year-on-year, and a net profit of 0.809 billion yuan, down 15.94% year-on-year. The third quarter alone saw a revenue of 14.841 billion yuan, a decrease of 27.61% year-on-year, and a net profit of 0.256 billion yuan, down 26.71% year-on-year [1][2] - Despite the short-term pressure on revenue and performance, the company is expected to maintain a high level of investment in Anhui Province, and the integration of business segments may create a second growth curve [1] - New signed contracts showed steady growth, with a total of 371.2 billion yuan in new contracts in Q3 2025, up 15.09% year-on-year, and a cumulative total of 1,122.06 billion yuan for the first three quarters, up 6.48% year-on-year [2] - The company’s cash flow significantly improved, with a net cash outflow of 1.967 billion yuan in the first three quarters, which is 3.288 billion yuan less than the previous year [3] Financial Performance Summary - For the first three quarters of 2025, the company's gross margin was 13.1%, up 0.89 percentage points year-on-year, while the net profit margin was 2.55%, up 0.13 percentage points year-on-year [3] - The company’s revenue forecast for 2025-2027 is adjusted to 1.25 billion, 1.41 billion, and 1.57 billion yuan respectively, slightly down from previous estimates [1] - The company’s financial data shows a projected revenue of 89.688 billion yuan for 2025, with a growth rate of -7.06% [4] Order and Project Insights - The company’s new signed orders in infrastructure and municipal projects are rapidly increasing, with significant growth in specific sectors such as highway and bridge projects, which saw a 32% increase in Q3 [2] - The report indicates a positive outlook for project advancement into Q4, suggesting continued momentum in order execution [2]