ATCDI(603357) 天风证券·2024-08-28 10:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.74 CNY, based on a 14x PE for 2024 [1][5]. Core Views - The company's revenue for the first half of 2024 reached 1.564 billion CNY, a year-on-year increase of 9.94%, while net profit attributable to the parent company decreased by 5.99% to 234 million CNY [1]. - The decline in profit is attributed to a decrease in gross margin and an increase in asset and credit impairment losses [1]. - The report slightly lowers the profit forecast for 2024-2026, now estimating net profits of 510 million, 580 million, and 660 million CNY respectively [1]. Revenue Growth - The company achieved revenue growth in various segments, with engineering general contracting revenue increasing by 46.19% year-on-year to 659 million CNY in H1 2024 [2]. - New contracts signed in H1 2024 totaled 1.598 billion CNY, a decrease of 27.33% year-on-year, with a backlog of 8.509 billion CNY, up 3.29% year-on-year [2]. Regional Performance - Revenue from the domestic market was 1.29 billion CNY, up 11.86% year-on-year, while revenue from outside the province was 267 million CNY, up 1.44% [3]. - The report highlights ongoing infrastructure investment in Anhui province, with a total of 75.39 billion CNY in fixed asset investment completed in H1 2024, representing 53.4% of the annual target [3]. Profitability and Cash Flow - The company's overall gross margin for H1 2024 was 34.0%, down 2.24 percentage points year-on-year, while the net profit margin was 15.26%, a decline of 2.38 percentage points [4]. - The cash flow from operations for H1 2024 was negative 446 million CNY, indicating a cash outflow increase of 160 million CNY year-on-year [4].