In-depth Impact Analysis of Zhejiang Construction Investment's 1.8 Billion Yuan Campus Construction Project

Based on the latest financial data and market information, I will comprehensively analyze this project from four dimensions:

, , , and .

According to the company’s 2024 financial data [0], Zhejiang Construction Investment’s annual revenue reached 21.79 billion USD (approximately 154 billion yuan). The 1.8 billion yuan project accounts for only

of annual revenue and of single-quarter revenue (approximately 140 billion yuan). From a scale perspective, this single project contributes relatively limited to the company’s overall revenue.

• Top Left Chart
  : 2025 stock price trend shows a volatile downward trend, currently at a relatively low level (USD 8.50)
• Top Right Chart
  : Key financial indicators show a net profit margin of only 0.25% and ROE of 2.62%, indicating weak profitability
• Bottom Left Chart
  : The 1.8 billion yuan project accounts for 1.17% of revenue, with potential profit contribution of only 4.5 million yuan (0.045 billion yuan)
• Bottom Right Chart
  : The risk assessment radar chart shows that the company has high risks in debt-paying ability and profitability

The company’s 2024 net profit margin was only

[0], and operating profit margin was . Based on this net profit margin:

• Potential net profit contribution from the 1.8 billion yuan project:
  approximately 4.5 million yuan
• Potential operating profit contribution:
  approximately 12.24 million yuan
  (based on 0.68% operating profit margin)

Due to the company’s extremely low profit margin, even large orders contribute very limited directly to profits. This reflects the operational challenges commonly faced by the construction industry.

• Current market capitalization:
  9.2 billion USD
  (approximately 65 billion yuan)
• The 1.8 billion yuan project accounts for
  2.77%
  of market capitalization
• Current P/E ratio:
  44.82x-65.38x
  [0]

From a valuation perspective, this project has limited impact on the company’s overall value. However, successful completion of the project may help the company

, which is conducive to obtaining more orders in the future, thus having an indirect positive impact on long-term valuation.

Although specific backlog data of the company has not been obtained, it can be inferred from financial performance:

• 2025 Q2 Revenue
  : 19.96 billion USD (approximately 140 billion yuan) [0]
• 2024 Full-Year Revenue
  : 21.79 billion USD [0]

The data shows that the company has a large revenue scale, indicating

. As an incremental order, the 1.8 billion yuan project further strengthens the company’s order reserve.

1. Contract Performance Risk
   : The 1.8 billion yuan project is large-scale; if there are project delays or quality issues, the company may face liability for breach of contract.
2. Payment Recovery Risk
   : The construction engineering industry generally faces
   long payment cycles and high bad debt risks
   .
3. Cost Control Risk
   : Fluctuations in raw material prices and rising labor costs may compress the project’s profit margin.

• Current ratio:
  0.92
  (below the 1.0 safety line) [0]
• Quick ratio:
  0.90
  [0]
• Debt risk level:
  High Risk
  [0]

These indicators show that the company faces certain short-term liquidity pressure, which may affect the smooth performance of the project.

• The country continues to promote infrastructure construction investment.
• The demand for higher education campus construction continues to exist.
• As an economically developed region, Zhejiang Province has strong financial strength, so the project payment recovery risk is relatively controllable.

• The construction industry is highly competitive, with generally low profit margins.
• The downturn in the real estate market affects related construction businesses.
• Higher environmental protection requirements increase compliance costs.

• Regional leading position: Significant brand and resource advantages in Zhejiang Province.
• Large project experience: Undertaking the Qiantang University campus construction project demonstrates the company’s ability to undertake large-scale projects.
• Scale effect: The huge revenue scale (154 billion yuan) shows the company’s high market share.

• Weak profitability: Net profit margin of only 0.25% and ROE of only 2.62% [0].
• High financial risk: Debt risk is assessed as “High Risk” [0].
• Weak stock price performance: A cumulative decline of 59.68% over 3 years [0].

• Cost overrun risk during project execution.
• Cash flow pressure caused by delayed accounts receivable recovery.
• Current ratio below 1 may lead to short-term debt repayment problems.

• Sustained decline in industry profit margins.
• Transformation and upgrading pressure: Need to transform to high-value-added businesses.
• Regional market saturation may limit growth space.

1. The 1.8 billion yuan project provides the company with
   stable order increment
   , helping to maintain revenue scale.
2. Campus construction projects have the characteristics of
   good social benefits and relatively reliable payment recovery
   .
3. Successful project performance can enhance the company’s
   brand influence
   , helping to obtain subsequent orders.

1. Extremely low profit margin
   : The 1.8 billion yuan project contributes only about 4.5 million yuan in net profit, with limited improvement to performance.
2. High financial risk
   : Current ratio of 0.92 and debt risk rating of “High Risk” indicate the company’s fragile financial status [0].
3. Execution risk
   : Large-scale projects face multiple uncertainties such as performance and payment recovery.
4. Valuation risk
   : The P/E ratio of 44.82x-65.38x is at a relatively high level [0], while profitability is weak, so there may be valuation pressure.

• Closely monitor project execution progress and payment recovery status.
• Pay attention to changes in the company’s liquidity and debt risk.
• The 1.8 billion yuan project has limited impact on overall performance and should not be the main basis for investment decisions.

• View the financial contribution of this project cautiously.
• Focus on the company’s
  profitability improvement
  and
  financial risk resolution
  processes.
• It is recommended to wait for clearer
  profitability improvement signals
  before considering investment.

Indicator	Current Value	Target Value	Monitoring Frequency
Net Profit Margin	0.25%	>2%	Quarterly
Current Ratio	0.92	>1.2	Quarterly
ROE	2.62%	>8%	Annual
Debt Risk	High Risk	Medium-Low Risk	Quarterly

The 1.8 billion yuan campus construction project has

on Zhejiang Construction Investment’s . The project accounts for only 1.17% of annual revenue and contributes only 4.5 million yuan in potential profit, which cannot fundamentally improve the company’s weak profitability.

From the perspective of

, the company’s large revenue scale shows sufficient backlog, and this project as an incremental order helps maintain business scale.

From the perspective of

, although the project has positive significance, the company faces multiple challenges such as , so it is necessary to focus on the processes of financial condition improvement and profitability enhancement.

This project should not be the main basis for investment decisions; investors should pay more attention to the company’s overall and progress.

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[0] Gilin API Data - Zhejiang Construction Investment (002761.SZ) financial data, stock price data and analysis