CSCEC(SH:601668) GOLDEN SUN SECURITIES·2024-04-30 02:02Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's performance in Q1 2024 met expectations, with revenue of 549.32 billion yuan, a year-on-year increase of 4.7%, and a net profit attributable to shareholders of 14.92 billion yuan, up 1.2% year-on-year. The slower growth in net profit compared to revenue is primarily due to increased financial expenses from foreign exchange losses [1][2] - The construction segment showed steady growth, while the real estate segment's profitability improved despite revenue pressure. The company reported revenues of 365.8 billion yuan from construction, 127.7 billion yuan from infrastructure, and 46.5 billion yuan from real estate, with year-on-year changes of +6.1%, +6.4%, and -8.8% respectively [1] - New signed contracts in Q1 included 806.2 billion yuan in construction contracts, a year-on-year increase of 11.4%, and 300.5 billion yuan in infrastructure contracts, up 23.2%. However, real estate contract sales fell to 77.8 billion yuan, down 31% year-on-year [1][2] Financial Performance Summary - The company achieved a comprehensive gross margin of 8.09% in Q1 2024, remaining stable year-on-year. The financial expense ratio increased significantly due to foreign exchange losses [2] - Operating cash flow showed a net outflow of 96.6 billion yuan, which is 31.2 billion yuan more than the same period last year, primarily due to reduced sales collections in the real estate sector and increased land purchases [2] - The forecast for net profit attributable to shareholders for 2024-2026 is 57.0 billion, 59.9 billion, and 62.5 billion yuan respectively, with corresponding EPS of 1.37, 1.44, and 1.50 yuan per share [2][3]