China State Construction Engineering (601668) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 2.19 trillion, down 3.5% year-over-year; net profit attributable to shareholders was RMB 46.19 billion, down 14.9%.

• New contract value hit RMB 4.5 trillion, up 4.1% year-over-year; cash flow from operations improved 43% to RMB 15.77 billion.

• Maintained top global credit ratings and ranked 14th in Fortune Global 500, 4th in China 500, and 1st among global contractors.

• Board proposes a cash dividend of RMB 2.715 per 10 shares, totaling RMB 11.22 billion, representing a 24.29% payout ratio.

Financial highlights

• Revenue: RMB 2.19 trillion, down 3.5% year-over-year; gross margin 9.9%, up 0.1ppt.

• Net profit attributable to shareholders: RMB 46.19 billion, down 14.9% year-over-year.

• Operating cash flow: RMB 15.77 billion, up 43% year-over-year.

• Basic and diluted EPS: RMB 1.11, down 15.3% year-over-year.

• Net assets per share: RMB 10.89, up 9.1% year-over-year.

• ROE: 10.37%, down 2.99ppt year-over-year.

Outlook and guidance

• 2025 targets: new contract value over RMB 4.6 trillion, revenue over RMB 2.28 trillion.

• Focus on high-quality growth, innovation, green and digital transformation, and risk management.

• Industry trends: urbanization, infrastructure investment, and real estate stabilization expected to drive demand.