CAMCE(SZ:002051) Changjiang Securities·2025-12-12 11:27Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time recommendation [11]. Core Insights - The company, Zhonggong International, is a leading player in international engineering, focusing on the integration of science, industry, and trade to create a second growth curve. It has established a global business network covering over 70 countries, transitioning from a traditional contractor to a multinational enterprise [6][22]. - The company is strategically targeting key markets along the "Belt and Road" initiative, particularly in oil and gas, new energy, and healthcare sectors, with significant growth in new contract signings in 2025 [6][9]. Summary by Relevant Sections Design Consulting and Engineering Contracting - The company's international engineering contracting revenue reached 8.219 billion yuan in 2024, a 29.81% increase from 6.332 billion yuan in 2023, demonstrating strong market expansion capabilities [7][60]. - The gross profit margin for design consulting has improved significantly, rising from 23.18% in 2020 to 40.34% in 2024, indicating strong profitability and cost optimization [7][71]. Key Core Equipment R&D and Manufacturing - The domestic market for cableway construction has substantial growth potential, with only 1,168 cableways in operation as of 2024, despite 15,700 A-level tourist attractions in China [8][85]. - The company is expanding its cableway business both domestically and internationally, signing strategic cooperation agreements to enhance its market presence [8]. Engineering Investment and Operations - The new contract signing in the engineering investment and operations segment has seen a dramatic increase, with new contracts rising from 231 million yuan in 2021 to 1.184 billion yuan in 2024, reflecting a 331% year-on-year growth [9]. - The company anticipates achieving net profits of 391 million, 421 million, and 472 million yuan from 2025 to 2027, with corresponding current market valuations of 28.39, 26.35, and 23.54 times [9]. Financial Performance - The company's operating cash flow has shown significant improvement in 2025 Q1-Q3, with a net cash flow increase of 159.34% due to successful project execution and cash collection [43]. - The company has maintained a healthy cash flow, with a collection ratio of 111.55% and a payment ratio of 86.43% in 2025 Q1-Q3 [43].