Group 1 - The company, Shaanxi Construction Group Co., Ltd. (SH 600248), announced the convening of its 26th meeting of the 8th Board of Directors on August 8, 2025, via communication methods [2] - For the fiscal year 2024, the company's revenue composition is as follows: engineering contracting accounts for 92.81%, petrochemical engineering business accounts for 6.02%, other industries account for 0.81%, and other businesses account for 0.36% [2]

Investment Rating - The report maintains a "Buy" rating for the company [7][18] Core Views - The company's performance is under pressure due to impairment losses, but its business outside the province and overseas is showing strong growth [1][2] - Revenue for 2024 is projected at 151.14 billion, a year-on-year decrease of 16.29%, with a net profit of 2.96 billion, down 25.3% year-on-year [2] - The company plans to distribute a cash dividend of 525 million for 2024, with a dividend payout ratio of 17.74% [2] Financial Performance - In Q1 2025, the company achieved revenue of 23.24 billion, a decline of 16.3% year-on-year, and a net profit of 417 million, down 24.5% year-on-year [1] - The gross profit margin for 2024 is reported at 11.7%, an increase of 1.11 percentage points year-on-year [3] - The company’s cash flow from operations (CFO) for 2024 was -8.19 billion, a year-on-year increase in outflow of 717 million [5] Business Development - New contracts signed in Q1 2025 were 75.1 billion, remaining stable year-on-year, while total new contracts for 2024 were 346.94 billion, down 12.48% [4] - The company aims to achieve a signed contract amount of 390.8 billion in 2025, expecting a year-on-year growth of 12.6% [4] - The company’s revenue from overseas markets grew by 58.19% year-on-year, while domestic revenue decreased by 16.87% [3] Valuation Metrics - The projected PE ratios for 2025, 2026, and 2027 are 4.5, 4.1, and 3.6 respectively [2][6] - The company’s total assets for 2024 are estimated at 353.19 billion, with a debt-to-asset ratio of 88.68% [12][13]