EBSCN·2024-05-06 01:03Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Communications Construction Company (CCCC) [3][4]. Core Views - CCCC's new contract signing showed robust growth, with a total of 507.3 billion yuan in new contracts in Q1 2024, representing a year-on-year increase of 10.8% [2]. - The company's net profit attributable to shareholders increased significantly due to the reversal of impairment losses, with a net profit of 6.14 billion yuan in Q1 2024, up 10.0% year-on-year [1][2]. - CCCC's gross margin improved to 11.9% in Q1 2024, reflecting effective cost control measures [2]. Summary by Sections Financial Performance - In Q1 2024, CCCC achieved total revenue of 176.9 billion yuan, with a year-on-year growth of 0.18% [1]. - The company reported a net profit of 6.14 billion yuan, up 10.0% year-on-year, and a net profit excluding non-recurring items of 6.10 billion yuan, up 12.1% year-on-year [1]. Contract Signing and Business Segments - New contracts signed in Q1 2024 amounted to 507.3 billion yuan, with domestic and international contracts at 416.1 billion yuan and 91.2 billion yuan, respectively [2]. - The infrastructure segment saw a significant increase in new contracts, particularly in urban construction, which grew by 60.2% year-on-year [2]. Cost Control and Profitability - CCCC reversed credit impairment losses of approximately 360 million yuan in Q1 2024, contributing to the increase in net profit [2]. - The company improved its gross margin to 11.9% and net margin to 4.3%, with sales, management, and financial expense ratios showing slight increases [2]. Profit Forecast and Valuation - The report forecasts net profits for CCCC at 25.78 billion yuan, 27.84 billion yuan, and 29.85 billion yuan for 2024, 2025, and 2026, respectively [3]. - The estimated P/E ratio for CCCC is projected to remain at 6 for 2024 and 2025, indicating a stable valuation outlook [3].