CCCC(601800) 海通证券·2024-11-01 04:11Investment Rating - The investment rating for China Communications Construction Company (CCCC) is "Outperform the Market" and is maintained [1]. Core Views - The report highlights significant improvements in revenue, profit, and cash flow for Q4, indicating a positive trend for the company [1]. - The company achieved a total operating revenue of 536.64 billion yuan in the first three quarters of 2024, a year-on-year decrease of 2.26%, while the net profit attributable to the parent company was 16.27 billion yuan, down 0.61% year-on-year [5]. - The report emphasizes the company's strong performance in overseas contracts, with a 25% increase in new contracts signed abroad, reflecting the company's strategic focus on international expansion [5]. Financial Performance Summary - For Q3 2024, the company reported a revenue decline of 1.73% year-on-year and a net profit decline of 0.65% year-on-year, with a gross profit margin of 11.30% [5]. - The gross profit margin for the first three quarters of 2024 increased by 0.23 percentage points to 11.54%, while the net profit margin rose by 0.11 percentage points to 3.91% [5]. - The company experienced a significant increase in operating cash outflow, totaling 77.03 billion yuan, which is a 52.92% increase year-on-year [5]. Contract and Business Growth - In the first three quarters of 2024, the company signed new contracts worth 12,804.56 billion yuan, a year-on-year increase of 9.28%, with Q3 alone seeing a 12.12% increase [5]. - The report notes that the company is accelerating the development of emerging business sectors, with new contracts in these areas reaching 390 billion yuan, a 27% increase [5]. Earnings Forecast - The earnings per share (EPS) for 2024 and 2025 are projected to be 1.51 yuan and 1.59 yuan, respectively, with a reasonable valuation range of 12.11 to 13.62 yuan based on a price-to-earnings (PE) ratio of 8-9 times [5][6].