Core Viewpoint - The company experienced a decline in overall revenue and net profit in the first half of the year, but certain segments, particularly engineering testing, showed growth [1][2]. Revenue and Profit Summary - The company achieved a total revenue of 4.358 billion yuan in the first half of the year, a year-on-year decrease of 11.93% [1][2]. - The net profit attributable to shareholders was 559 million yuan, down 10.85% year-on-year [1][2]. - In Q2 alone, revenue was 2.684 billion yuan, a decrease of 4.43% year-on-year, with net profit at 465 million yuan, down 13.04% [1][2]. Business Segment Performance - The main business segment, surveying and design, generated revenue of 3.194 billion yuan, a decline of 15.44% year-on-year [2]. - Engineering general contracting and project management saw revenue of 739 million yuan, a slight increase of 0.63% [2]. - Engineering testing revenue grew significantly to 164 million yuan, up 32.06% year-on-year [2]. - Supervision revenue decreased to 126 million yuan, down 8.71% year-on-year [2]. Profitability and Cost Efficiency - The overall gross margin for the company was 28.20%, an increase of 0.15 percentage points year-on-year [2]. - The gross margin for the surveying and design business improved to 33.49%, up 0.57 percentage points [2]. - The company’s net profit margin increased slightly to 12.83%, up 0.16 percentage points year-on-year [2]. Cash Flow and Financial Health - The company faced increased cash flow pressure, with a net cash outflow from operating activities of 1.347 billion yuan, an increase of 123 million yuan year-on-year [3]. - The cash collection ratio was 73.83%, down 2.45 percentage points year-on-year [3]. - The asset-liability ratio improved slightly to 49.97%, a decrease of 3.34 percentage points year-on-year [3]. Contract and Growth Opportunities - The company signed new contracts worth 9.39 billion yuan in the first half of 2025, exceeding its planned target [4]. - The company is focusing on digital solutions in infrastructure projects, leveraging technologies like BIM and AI [4]. - There is a strategic push towards urban renewal and low-altitude economy projects, with significant involvement in national and local planning initiatives [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company achieved operating revenue of 337.055 billion yuan in the first half of the year, a year-on-year decrease of 5.71%. The net profit attributable to shareholders was 9.568 billion yuan, down 16.06% year-on-year, while the net profit after deducting non-recurring gains and losses was 8.105 billion yuan, a decrease of 23.70% year-on-year [2][6][12]. - The decline in revenue is primarily attributed to a slowdown in the domestic construction industry, with the main business income from infrastructure construction dropping to 298.241 billion yuan, a decrease of 7.05% [12]. - The company has shown improvement in operational quality, with new contract signings reaching 991.054 billion yuan, a year-on-year increase of 3.14%, completing 49% of the annual target [12]. Summary by Sections Financial Performance - The company reported a comprehensive gross margin of 10.64%, a decrease of 1.01 percentage points year-on-year. The gross margin for infrastructure construction was 9.74%, down 0.90 percentage points [12]. - The expense ratio decreased year-on-year to 4.94%, with financial costs benefiting from reduced financing costs and increased interest income from infrastructure investment projects [12]. - The cash collection ratio improved to 90.34%, an increase of 11.99 percentage points year-on-year, indicating better cash flow management [12]. Business Segments - The infrastructure design business saw a revenue decline of 5.60%, attributed to a reduction in EPC projects and design projects [12]. - The dredging business revenue fell by 13.27%, also due to the slowdown in domestic construction [12]. Market Outlook - The company plans to increase its dividend payout ratio by 1 percentage point compared to previous years, reflecting a commitment to shareholder returns [12]. - The overseas market continues to grow steadily, with new contracts signed in foreign regions amounting to 200.379 billion yuan, a year-on-year increase of 2.20% [12].