Core Viewpoint - China Energy Engineering Corporation (China Energy) reported a total of 10,740 new projects signed in Q2 2025, with a new contract amount of 386.46 billion yuan, reflecting a year-on-year growth of 4.98% [1] Summary by Category Project and Contract Overview - The number of new projects in the engineering construction business was 2,355, with a new contract amount of 352.987 billion yuan [1] - The surveying, design, and consulting business signed 3,809 new projects, amounting to 10.883 billion yuan [1] Domestic and International Performance - The new contract amount within China reached 575.877 billion yuan, showing a year-on-year increase of 2.25% [1] - The overseas new contract amount was 199.479 billion yuan, which represents a year-on-year growth of 13.74% [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][17]. Core Views - The company achieved a revenue of 436.71 billion yuan in 2024, representing a year-on-year growth of 7.56%, with a net profit attributable to the parent company of 8.40 billion yuan, up 5.13% year-on-year [1][5]. - The company is actively expanding its "Four New" businesses, which include new energy, new infrastructure, new industries, and new materials, contributing to its revenue growth [1][2]. - The company has made significant investments in renewable energy projects, including a 300 MW compressed air energy storage project and data center projects in Gansu, with a total investment of approximately 4.1 billion yuan [1][2]. Financial Performance - In 2024, the company reported a comprehensive gross margin of 12.41%, a slight decrease of 0.23 percentage points year-on-year, with various business segments showing different gross margin trends [3]. - The company’s cash flow from operations (CFO) improved significantly, reaching 11.03 billion yuan, a 16.3% increase year-on-year, attributed to enhanced collection of receivables [3][12]. - The company’s total revenue from its various business segments in 2024 includes 208.3 billion yuan from surveying and consulting, 3,668.2 billion yuan from engineering construction, 322.2 billion yuan from industrial manufacturing, and 361.3 billion yuan from investment operations [2]. Revenue and Profit Forecast - The company is projected to achieve net profits attributable to the parent company of 8.79 billion yuan, 9.41 billion yuan, and 10.17 billion yuan for the years 2025, 2026, and 2027, respectively [1][5]. - The expected revenue growth rates for the next few years are 6.75% for 2025, 6.67% for 2026, and 6.71% for 2027 [5][12]. Market Position - The company secured new orders totaling 1,408.88 billion yuan in 2024, reflecting a year-on-year increase of 9.8%, with notable growth in traditional energy and new energy sectors [2][5]. - The company’s market capitalization is approximately 73.94 billion yuan, with a total share capital of 32,428.73 million shares [8].