SCG(600170) 中国银河·2024-09-02 05:06Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company achieved steady revenue growth in H1 2024, with total revenue of 1459.77 billion, a year-on-year increase of 1.11%. The construction revenue was 1318.52 billion, up 3.16%, while other segments like building materials and real estate development saw declines [1] - The company signed new contracts worth 206.6 billion, a year-on-year increase of 0.59%, with significant growth in emerging business areas, which accounted for 26% of new contracts signed [1][2] - The forecast for net profit attributable to shareholders for 2024-2026 is 18.02 billion, 20.75 billion, and 24.80 billion respectively, with corresponding P/E ratios of 11.93, 10.37, and 8.67 [2][3] Financial Performance Summary - In H1 2024, the company reported a net profit of 8.26 billion, an increase of 9.32% year-on-year, while the operating cash flow showed a net outflow of 226.2 billion, an increase in outflow by 94.63 billion [1] - The gross margin for H1 2024 was 7.62%, a decrease of 0.48 percentage points year-on-year, while the net margin improved slightly to 0.61% [1] - The company’s debt-to-asset ratio increased to 85.76%, up 0.2 percentage points year-on-year [1] Contract and Business Development Summary - The company’s new contracts in H1 2024 included 1734 billion in construction, 111 billion in design consulting, and 148 billion in building materials, with the design consulting segment showing a notable growth of 23.8% [1] - The geographical distribution of contracts has improved, with the Yangtze River Delta region accounting for 84% of new contracts, and significant projects won in Shanghai and other regions [1] - Emerging business areas such as urban renewal and ecological environment projects saw new contracts worth 530 billion, reflecting a growth of 15.6% year-on-year [1]