Shanghai Construction released its interim results,with 1H26 revenue of RMB96,042mn(-8.57%YoY),attributable NP of RMB408mn(-42.47%YoY),and recurring NP of-RMB113mn(-152.29%YoY).In 2Q26,revenue/attributable NP stood at RMB46,940/407mn(-27.48/-54.19%YoY,-4.40/+40,915.45%QoQ),below our expectation of RMB638mn,owing to alarger-than-expected revenue decline.As aleading regional construction SOE in Shanghai,the company benefits from urban renewal and urban village renovation,demonstrating stronger operational resilience than other regions.We maintain OVERWEIGHT.
1H26 overall GPM picked up
In 1H26,the company's overall GPM reached 9.14%(+0.86pp YoY),with 2Q26 at 10.38%(+1.63pp YoY,+2.42pp QoQ).By segment,1H26 revenue from construction/building materials/design consulting reached RMB73,600/3,900/1,500mn(-20.1/-36.9/-0.8%YoY),accounting for 76.9/4.0/1.6%of total revenue(-11.3/-1.8/+0.1pp YoY),with GPMs of 8.3/10.5/24.9%(+1.76/-0.13/+9.64pp YoY).Property development generated revenue of RMB13,400mn,vs only RMB553mn in 1H25,with its revenue share rising 13.5pp to 14.1%,possibly related to project delivery schedules.Additionally,the gold business achieved revenue of RMB649mn,+61%YoY,with aGPM of 41.8%.
Revenue slide and financial expense rise lifted expense ratio
In 1H26,the expense ratio was 8.51%(+0.82pp YoY),with sales/administrative/R&D/financial expense ratios of 0.41/3.48/3.16/1.46%(+0.18/-0.10/+0.21/+0.52pp YoY).Financial expenses grew+42.5%YoY,due to the expensing of interest on certain property projects settled this year,leading to asignificant decline in interest income.Total impairment expenses in 1H26 were RMB118mn,vs areversal of RMB315mn in 1H25.Consequently,the 1H26 attributable NPM stood at 0.43%(-0.25pp YoY),with 2Q26 at 0.87%(-0.51pp YoY).As of end-1H26,the debt-to-asset ratio/interest-bearing debt ratio were 84.5/24.1%(-1.08/+0.04pp YoY),with accounts receivable and contract assets decreasing by RMB4,500/7,300mn YoY.Net operating cash flow in 1H26 was-RMB15,600mn(with outflow narrowing by RMB2,890mn YoY),with cash received/paid ratios at 114/129%(-11.6/-14.6pp YoY).
1H26 new orders for engineering business stabilized
In 1H26,newly-signed contracts totaled RMB121.5bn(-6.7%YoY),with 2Q26 at RMB61.1bn(-6.9%YoY).By segment,construction/design consulting/building materials/property contracts reached RMB99.5/6.7/9.0/2.9bn(+1.6/-9.0/-32.8/-58.8%YoY),with the core engineering business stabilizing and recovering.The company has expanded into six emerging businesses and seven fields along its industry chain,with emerging business contracts of RMB31.1bn,accounting for 26%of new contracts.Among these,urban renewal/ecological environment/water conservancy contracts reached RMB8.9/1.6/5.3bn,while intelligent construction/construction services/new infrastructure contributed RMB3.3/1.1/10.8bn.Regionally,the Yangtze River Delta accounted for 78%,with overseas contracts at RMB4.2bn(+25%YoY),representing 3%.
Earnings forecasts and valuation
We maintain our 2026/2027/2028 attributable NP forecasts at RMB1,073/1,021/1,052mn.Given the company's sufficient impairment provisions,the potential for Shanghai's property market to recover first,and its gold mine resources,we value the stock at 25x 2026E PE,above its peers’average of 15x on Wind consensus.We maintain our target price of RMB3.02.OVERWEIGHT.
Risks:Contract execution missing our expectations,delayed cash collection.

　　上海建工发布半年报，2026H1实现营收960.42亿元（yoy-8.57%），归母净利4.08亿元（yoy-42.47%），扣非净利-1.13亿元（yoy-152.29%）。其中Q2实现营收469.40亿元（yoy-27.48%，qoq-4.40%），归母净利4.07亿元（yoy-54.19%，qoq+40915.45%），低于我们的预期（6.38亿元），主要是收入下滑超预期。公司作为上海区域建筑国企龙头，深度受益城市更新与城中村改造，经营韧性优于其他区域，维持“增持”。
　　26H1整体毛利率提升，建筑与设计业务毛利改善、黄金业务高增
　　26H1公司综合毛利率为9.14%，同比+0.86pct，其中26Q2为10.38%，同比+1.63pct，环比+2.42pct。分业务看，26H1建筑施工/建材工业/设计咨询实现营收736/39/15亿元，同比-20.1%/-36.9%/-0.8%，占比76.9%/4.0%/1.6%，同比-11.3/-1.8/+0.1pct，毛利率8.3%/10.5%/24.9%，同比+1.76/-0.13/+9.64pct。房产开发实现收入134亿元，25H1仅有5.53亿元，占比升13.5pct至14.1%，或与项目交付节奏有关。此外，公司黄金业务实现营收6.49亿元，同比增长61%，毛利率达41.8%。
　　收入下滑、财务费用增长抬升期间费用率，减值增加拖累净利率
　　26H1期间费用率8.51%，同比+0.82pct，其中销售/管理/研发/财务费用率为0.41%/3.48%/3.16%/1.46%，同比+0.18/-0.10/+0.21/+0.52pct，财务费用同比增长42.5%，主因部分房地产项目结算本年利息支出转费用化，导致利息收入大幅减少。26H1合计减值支出1.18亿元，去年同期为冲回3.15亿元。综合影响下，公司26H1归母净利率为0.43%，同比-0.25pct，26Q2归母净利率0.87%，同比-0.51pct。截至26H1末公司资产负债率/有息负债率分别为84.5%/24.1%，同比-1.08/+0.04pct，应收账款、合同资产同比减少45/73亿元。26H1经营性现金流净额-156亿元，同比少流出28.9亿元，收/付现比114%/129%，同比-11.6/-14.6pct。
　　26H1工程主业新签合同企稳，新兴业务占比26%
　　26H1公司新签合同额1215亿元，同比-6.7%，其中26Q2新签611亿元，同比-6.9%。其中上半年建筑施工/设计咨询/建材工业/房地产分别新签合同额995/67/90/29亿元，同比+1.6%/-9.0%/-32.8%/-58.8%，工程主业新签企稳回升。公司围绕产业链格局拓展六大新兴业务、七大重点赛道，六大新兴业务新签合同额311亿元，新签占比26%，其中城市更新、生态环境、水利水务分别新签89/16/53亿元，智能建造、建筑服务业与新基建领域分别新签33/11/108亿元。分地区看，长三角区域占比达78%，海外新签42亿元，同比+25%，占比3%。
　　盈利预测与估值
　　我们维持公司26-28年归母净利润为10.73/10.21/10.52亿元。可比公司26年Wind一致预期PE均值为15倍，考虑到公司减值计提充分，上海地产市场有望率先回暖，且同时拥有金矿资源，认可给予公司26年25倍PE估值，维持目标价为3.02元，维持“增持”评级。
　　风险提示：订单落地不及预期；工程回款不及预期。