Soochow Securities·2024-05-04 11:30Investment Rating - The investment rating for China Railway Construction (601186) is "Buy" (maintained) [1] Core Views - The company reported a stable growth in new orders, particularly in hydropower and green environmental projects, with a slight increase in net profit margin [3][4] - The company’s operating revenue for Q1 2024 was CNY 274.95 billion, a year-on-year increase of 0.5%, while the net profit attributable to shareholders was CNY 6.03 billion, up 2.0% year-on-year [3] - The gross profit margin remained stable at 7.79%, with a slight increase in net profit margin to 2.19% [3] Financial Performance Summary - Total revenue for 2022 was CNY 1,096.31 billion, with a projected increase to CNY 1,180.98 billion in 2024, reflecting a year-on-year growth of 3.78% [2] - The net profit attributable to shareholders for 2022 was CNY 26.68 billion, with a forecasted increase to CNY 27.40 billion in 2024, indicating a growth of 4.98% [2] - The latest diluted EPS is projected to be CNY 2.02 for 2024, with a P/E ratio of 4.20 [2] Order and Contract Analysis - In Q1 2024, the company secured new contracts worth CNY 550.69 billion, a year-on-year increase of 1.5% [4] - The breakdown of new contracts includes CNY 410.1 billion from engineering contracting, CNY 464 million from investment operations, and CNY 277 million from green environmental projects, with the latter showing a significant year-on-year growth of 37% [4] - The company’s domestic and international new contracts were CNY 5,167.4 billion and CNY 339.5 billion respectively, with year-on-year increases of 1.5% and 11.9% [4] Cash Flow and Debt Management - The net cash flow from operating activities for Q1 2024 was -CNY 46.59 billion, indicating a year-on-year outflow increase of CNY 7.38 billion [3] - The company’s interest-bearing debt stood at CNY 399.5 billion, with a debt-to-asset ratio of 75.6%, reflecting a slight increase from the previous quarter [3]