CNCEC(601117) 国盛证券·2024-08-31 09:39Investment Rating - The report maintains a "Buy" rating for China Chemical (601117.SH) [4] Core Views - The company's revenue for H1 2024 was 91 billion, a slight decrease of 0.3% year-on-year, with a net profit attributable to shareholders of 2.84 billion, down 3.6% year-on-year. However, the non-recurring profit increased by 3.5%, aligning with expectations [1] - The decline in Q2 performance is attributed to the slowdown in infrastructure projects due to funding constraints and an increase in financial costs due to exchange losses [1] - The company achieved a significant improvement in operational profitability, with a gross margin of 9.82%, up 1.06 percentage points year-on-year, driven by the chemical and industrial sectors [1] Financial Performance Summary - For H1 2024, the company reported revenues of 91 billion, with Q1 and Q2 revenues of 45.2 billion and 45.9 billion respectively, showing a year-on-year growth of 5.5% in Q1 but a decline of 6% in Q2 [1] - The net profit attributable to shareholders for H1 2024 was 2.84 billion, with Q1 and Q2 profits of 1.22 billion and 1.62 billion respectively, reflecting a year-on-year increase of 9.5% in Q1 but a decrease of 12% in Q2 [1] - The company signed new contracts worth 203.6 billion in H1 2024, a 10% increase year-on-year, with engineering contracting contributing 194.4 billion, up 11% [2] Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 5.7 billion, 6.3 billion, and 7.2 billion respectively, representing growth rates of 4.2%, 11.5%, and 13.8% [2] - The expected EPS for the same period is 0.93, 1.03, and 1.17 yuan, with corresponding P/E ratios of 7.4, 6.6, and 5.8 times [2][3]