CNCEC(601117) 光大证券·2024-09-03 02:39Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a slight decline in revenue and net profit for the first half of 2024, with revenue at 91 billion CNY, a year-on-year decrease of 0.3%, and net profit at 28 billion CNY, down 3.6% [2][3] - The company has a strong order backlog, with new contracts signed in H1 2024 amounting to 203.57 billion CNY, representing a year-on-year increase of 10.1% [3] - The company's overseas business has shown significant growth, with new contracts signed increasing by 132.5% year-on-year [3] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 91 billion CNY, with a net profit of 28 billion CNY and a non-recurring net profit of 31 billion CNY [2] - The second quarter of 2024 saw revenue of 45.9 billion CNY, a decrease of 5.5% year-on-year, and a net profit of 16 billion CNY, down 11.6% [2] - The gross profit margin improved to 9.4%, with a net profit margin of 3.4% [4] Business Segments - The chemical engineering, infrastructure, and environmental governance sectors reported revenues of 73.9 billion CNY, 10.1 billion CNY, and 1.1 billion CNY respectively, with year-on-year growth rates of 4.3%, -20.2%, and -22.4% [3] - The company’s domestic and overseas revenue was 69.7 billion CNY and 20.7 billion CNY, reflecting a year-on-year change of -3.2% and +10.0% respectively [3] Profitability and Cash Flow - The company’s financial expenses increased significantly due to exchange losses, leading to a rise in the financial expense ratio [4] - Operating cash flow was negative at -4.57 billion CNY, with a significant outflow compared to the previous year [4] Future Outlook - The profit forecasts for 2024-2026 have been adjusted downwards to 5.45 billion CNY, 5.97 billion CNY, and 6.63 billion CNY, reflecting a decrease of 7.4% for 2024 [4] - The strong growth in new contracts and overseas business is expected to drive stable growth in the company's performance [4]