CRHIC(600528) 金融界·2025-03-28 14:45Core Viewpoint - The company reported a decline in revenue for 2024, primarily due to challenges in the domestic market, while showing growth in overseas markets, particularly in tunnel construction equipment and switchgear business [1][2][3]. Revenue Decline: Domestic Market Pressure - In 2024, the company's operating revenue decreased by 3.54% year-on-year to 29.003 billion yuan, mainly due to a 7.44% drop in new contract value, which totaled 48.144 billion yuan [2]. - The new contracts for specialized engineering machinery and related services fell by 20.23%, with tunnel construction equipment contracts down by 23.59%, attributed to a reduction in traditional market projects [2]. - Although there were orders for tunnel boring machines in various domestic cities, the overall market demand shrinkage hindered contract growth [2]. - The engineering machinery and related services segment saw a 2.52% increase in new contracts, but revenue declined by 8.49% due to a longer revenue conversion cycle [2]. Overseas Market: Strong Growth Momentum - In contrast to the domestic market, the company achieved significant growth in overseas markets, with new contracts totaling 3.673 billion yuan, a 19.58% increase year-on-year [3]. - The overseas new contracts for tunnel construction equipment reached 2.209 billion yuan, marking a 27.64% increase and setting a historical high [3]. - The company expanded its presence in Europe, Asia, and Oceania, and successfully exported domestic shield machines to the North American market for the first time [3][4]. Switchgear Business Progress - The switchgear business also saw notable progress in overseas markets, with new contracts amounting to 604 million yuan, a year-on-year increase of 28.56% [4]. - The company made significant breakthroughs in markets such as North Africa and South America, contributing to overall performance amid domestic market challenges [4]. Profitability Improvement: Effective Cost Control - Despite the revenue decline, the company's profitability improved in 2024, with net profit reaching 1.770 billion yuan, a 1.50% increase year-on-year [5]. - The non-recurring net profit was 1.641 billion yuan, up by 3.68%, primarily due to effective cost control measures [5]. - Management expenses decreased by 5.25%, and financial expenses fell by 3.25%, while sales expenses grew by 2.55%, but at a significantly lower rate than the previous year [5]. - The overall gross profit margin was 19.13%, an increase of 0.1 percentage points, with the high-margin tunnel construction equipment segment generating 8.961 billion yuan in revenue, a 12.31% increase [5]. - The growth in this segment significantly contributed to the improvement in overall profitability, highlighting the need for the company to balance domestic and international markets and optimize its business structure for future development [5].