Investment Rating - The report maintains an "Accumulate" rating for China State Construction Engineering Corporation (601668) [2][5]. Core Views - The company reported a steady performance in its 2025 interim results, with a revenue of 1,108.31 billion yuan, a year-on-year decrease of 3.17%, and a net profit attributable to shareholders of 30.40 billion yuan, an increase of 3.24% [5]. - The gross margin and net margin improved slightly, with a gross margin of 9.43% and a net margin of 3.65% for the first half of 2025 [5]. - The company continues to optimize its business structure, with significant growth in infrastructure and energy sectors, while the real estate sector experienced a slight decline [5]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a total revenue of 1,108.31 billion yuan, a decrease of 3.17% year-on-year, and a total profit of 49.83 billion yuan, an increase of 0.13% [5]. - The net profit attributable to shareholders was 30.40 billion yuan, reflecting a year-on-year increase of 3.24%, with basic earnings per share at 0.73 yuan, up 2.8% [5]. Margin Analysis - The gross margin for the first half of 2025 was 9.43%, up by 0.02 percentage points year-on-year, while the net margin was 3.65%, an increase of 0.12 percentage points [5]. - The company improved its expense ratios, with a sales expense ratio of 0.37%, a management expense ratio of 1.51%, and a financial expense ratio of 0.80% [5]. Business Segments - The total new contracts signed in the first half of 2025 amounted to 25,010 billion yuan, a year-on-year increase of 0.9% [5]. - The construction business saw new contracts of 14,964 billion yuan, down 2.3%, while the infrastructure business grew by 10% to 8,237 billion yuan [5]. - The real estate sector reported a contract sales amount of 174.5 billion yuan, a decrease of 8.9%, with a sales area of 6.33 million square meters, down 3.3% [5]. Investment Outlook - The report suggests that the company, as a leading player in the global construction industry, has shown resilience during the cyclical downturn in the real estate and construction sectors [5]. - The forecast for earnings per share (EPS) for 2025 and 2026 is 1.17 yuan and 1.21 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 4.76 and 4.58 [5][7].