Investment Rating - The report maintains a "Buy" rating for Jianghe Group (601886) [7][4] Core Views - The company achieved a high growth in net profit excluding non-recurring items, with a year-on-year increase of 21.43% in H1 2025 [1] - The overseas business has shown significant growth, with orders increasing by over 60% [2] - The company plans to distribute a cash dividend of 170 million (including tax), highlighting its investment value [4] Financial Performance - In H1 2025, Jianghe Group reported revenues of 9.339 billion, a decrease of 5.86% year-on-year, while net profit attributable to shareholders was 328 million, reflecting a 1.69% increase [1] - The gross profit margin improved to 15.75%, up by 0.12 percentage points year-on-year [3] - The company experienced a cash outflow of 1.028 billion due to increased payment to suppliers [3] Business Segments - The construction decoration and healthcare segments generated revenues of 8.761 billion and 578 million, with year-on-year changes of -6.52% and +5.36% respectively [2] - The company secured a total bid amount of approximately 13.7 billion in H1 2025, representing a year-on-year increase of 6.29% [2] - Overseas orders accounted for 5.2 billion, making up 38% of total orders, with a year-on-year growth of 61% [2] Dividend Policy - Jianghe Group has committed to distributing at least 80% of its net profit attributable to shareholders in cash dividends for the years 2025 to 2027 [4] - The current dividend yield (TTM) stands at 6.94%, indicating a strong dividend value proposition [4] Financial Projections - The projected net profit attributable to shareholders for 2025, 2026, and 2027 is adjusted to 680 million, 740 million, and 810 million respectively [4] - The corresponding price-to-earnings ratios (PE) are estimated at 13.3, 12.2, and 11.1 times [4]