Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 6.0 CNY, compared to the current stock price of 5.54 CNY [4]. Core Views - The company's revenue and performance are under pressure, with a year-on-year revenue decline of 6.21% to 248.56 billion CNY in Q1 2025, and a net profit decrease of 19.46% to 6.03 billion CNY [1][2]. - Despite the overall revenue decline, the real estate development segment saw significant growth, with a year-on-year increase of 59.48% [1]. - The company has a robust backlog of contracts, with a total of 7.23 trillion CNY in uncompleted contracts as of March 2025, which is a 5.1% increase from the previous year [3]. Revenue and Performance Summary - In Q1 2025, the revenue breakdown by segment is as follows: Infrastructure 216.80 billion CNY (down 7.99%), Design Consulting 4.67 billion CNY (down 2.21%), Equipment Manufacturing 6.25 billion CNY (down 5.77%), Real Estate Development 6.67 billion CNY (up 59.48%), and Other Businesses 14.90 billion CNY (up 3.15%) [1]. - The company's gross profit margin decreased to 8.46%, with specific margins for segments: Infrastructure 7.13%, Design Consulting 22.48%, Equipment Manufacturing 19.27%, and Real Estate Development 13.10% [2]. - The operating cash flow showed a net outflow of 77.40 billion CNY, which is an increase in outflow by 9.33 billion CNY year-on-year [2]. Contract and Order Summary - The new contract signing in Q1 2025 totaled 560.10 billion CNY, a decrease of 9.9% year-on-year, with domestic contracts at 494.43 billion CNY (down 13.6%) and international contracts at 65.67 billion CNY (up 33.4%) [3]. - The breakdown of new contracts by business area includes Engineering Construction 421.43 billion CNY (down 10.4%), Equipment Manufacturing 11.77 billion CNY (down 18.7%), Specialty Real Estate 6.92 billion CNY (up 2.8%), Asset Management 26.96 billion CNY (up 123.7%), Resource Utilization 6.45 billion CNY (down 16.7%), and Emerging Businesses 72.14 billion CNY [3].

Core Viewpoint - China State Construction Engineering Corporation reported steady revenue and profit growth in Q1 2025 despite ongoing pressures in the real estate market, driven by strong performance in infrastructure and emerging strategic industries [1][6]. Financial Performance - Revenue reached 555.3 billion yuan, a year-on-year increase of 1.1% - Net profit was 17.96 billion yuan, up 0.6% from the previous year - Basic earnings per share were 0.36 yuan, reflecting a 2.9% increase [1][3][5]. Business Structure Optimization - New contracts in the infrastructure sector totaled 420.6 billion yuan, a significant increase of 40% - Energy engineering contracts surged by 96.6%, while municipal engineering contracts rose by 44.4% - New contracts in the housing construction sector slightly decreased by 3.3% to 779.9 billion yuan [1][6][8]. Real Estate Business Performance - Real estate revenue was 53.7 billion yuan, a 15.5% increase year-on-year - Gross profit from real estate was 9.06 billion yuan, up 1.5% - The company added 1.95 million square meters of land reserves, all located in first-tier and strong second-tier cities [1][6][9]. New Business Highlights - Strategic emerging industries achieved revenue of 45.3 billion yuan, a growth of 34.2%, accounting for 8.2% of total revenue - Overseas business contracts reached 67.4 billion yuan, a 150% increase, with revenue of 23.9 billion yuan, up 8.5% [1][9].