GOLDEN SUN SECURITIES·2024-04-30 01:07Investment Rating - The report maintains a "Buy" rating for China Communications Construction Company (601800.SH) [2][7] Core Views - In Q1 2024, the company achieved operating revenue of 176.9 billion yuan, a year-on-year increase of 0.2%, and a net profit attributable to shareholders of 6.14 billion yuan, up 10% year-on-year. The growth was slightly above expectations due to lower impairment provisions and effective cost control measures leading to a 0.3 percentage point increase in gross margin [1][2] - The company signed new contracts worth 507.3 billion yuan in Q1 2024, representing a 10.8% year-on-year increase, completing 25.5% of the annual target. The municipal business showed strong performance, with significant growth in new contracts [1] Summary by Sections Financial Performance - Q1 2024 operating revenue was 176.9 billion yuan, with a net profit of 6.14 billion yuan, and a non-recurring net profit increase of 12% year-on-year. The gross margin improved to 11.9%, up 0.3 percentage points year-on-year. The net profit margin increased to 3.47%, up 0.31 percentage points year-on-year [1][2] - The company expects net profits for 2024, 2025, and 2026 to be 25.625 billion yuan, 27.257 billion yuan, and 28.941 billion yuan, respectively, with growth rates of 7.6%, 6.4%, and 6.2% [2][4][5] Contracting and Business Growth - New contracts signed in Q1 2024 totaled 507.3 billion yuan, with domestic and international contracts at 416.1 billion yuan and 91.2 billion yuan, respectively. The infrastructure business saw a 16% increase in new contracts, while municipal orders showed remarkable growth [1][2] - The company’s investment projects continue to shrink, with a 47% year-on-year decrease in contract amounts for infrastructure projects [1]