Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The chemical sector shows signs of recovery, while clean energy growth exceeds expectations. The company's core profit for the first half of 2024 decreased by 3.5% year-on-year to 600 million RMB. The clean energy segment continued its strong growth from Q1, with overseas revenue increasing by 72% year-on-year, driven by offshore products. Hydrogen energy product revenue rose by 74% to 170 million RMB. However, the chemical and liquid food segments underperformed, with the chemical sector's gross profit declining by 63% due to low industry demand [1][2] - The second half of 2024 is expected to see a slight rebound in the chemical sector, with continued strong growth in clean energy. Despite weak performance in the first half, the likelihood of a bottoming out is high, especially in the chemical sector, which saw a 32% quarter-on-quarter revenue increase in Q2. New orders for standard containers have also rebounded significantly [1][2] - The company expects the liquid food segment to achieve over 10% revenue growth and over 20% gross profit growth year-on-year in 2024. The total gross profit for the chemical and liquid food segments in the second half of the year is estimated to be 810 million RMB, with a year-on-year decline narrowing to 4% [1][2] Financial Summary - The company’s revenue is projected to grow from 19,602 million RMB in 2022 to 37,267 million RMB in 2026, with a compound annual growth rate (CAGR) of 11% from 2024 to 2026. Net profit is expected to increase from 1,055 million RMB in 2022 to 1,604 million RMB in 2026, with a recovery to double-digit growth in 2025 [5][11] - The estimated earnings per share (EPS) for 2024 is 0.64 RMB, with a projected P/E ratio of 9.1 times. The report adjusts the target price to 8.45 HKD, reflecting a 31.8% potential upside from the current price of 6.41 HKD [2][5]

Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company has shown revenue growth in the first half of 2024, with a 6.7% year-on-year increase in revenue to 11.48 billion RMB, although net profit decreased by 14.5% to 490 million RMB [2]. - The clean energy segment has performed exceptionally well, with a 25.1% increase in revenue to 7.88 billion RMB, driven by the recovery in natural gas consumption and supportive government policies [2]. - The hydrogen energy business has seen significant growth, with a 65.2% increase in revenue to 450 million RMB, supported by national policies promoting the hydrogen industry [3]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue is projected to grow from 19.60 billion RMB in 2022 to 34.64 billion RMB in 2026, with a compound annual growth rate (CAGR) of approximately 13.5% [11]. - Net profit is expected to increase from 1.06 billion RMB in 2022 to 1.90 billion RMB in 2026, with a CAGR of about 24.9% [11]. - Earnings Per Share (EPS) is forecasted to rise from 0.52 RMB in 2022 to 0.94 RMB in 2026 [11]. - The company's Price-to-Earnings (P/E) ratio is projected to decrease from 11.4 in 2022 to 6.3 in 2026, indicating a potentially undervalued stock [11]. Order Backlog and Future Growth - The company has a strong order backlog, with total orders increasing by 42.5% year-on-year to 29.35 billion RMB as of June 30, 2024 [2]. - New orders signed in the first half of 2024 reached 16.4 billion RMB, a 29.5% increase compared to the previous year [2].

[Financial Highlights](index=1&type=section&id=Financial%20Summary) The company's first-half 2024 financial performance shows revenue growth of 6.7% but a decline in net profit by 11.6% and basic EPS by 14.8% 2024 H1 Key Financial Data (Unaudited) | Metric | H1 2024 (Unaudited) (RMB '000) | H1 2023 (Unaudited) (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11,479,938 | 10,756,489 | 6.7% | | Net Profit | 503,829 | 570,032 | (11.6%) | | Profit attributable to equity holders | 486,141 | 568,673 | (14.5%) | | Core Profit | 604,208 | 625,944 | (3.5%) | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | (14.8%) | | Gross Margin | 14.3% | 16.5% | (2.2) percentage points | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated income statement, comprehensive income statement, balance sheet, and statement of changes in equity for the reporting period [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) During the reporting period, the company achieved revenue of approximately RMB 11.48 billion, a 6.7% year-on-year increase, but gross profit decreased to RMB 1.64 billion and profit for the period fell by 11.6% due to higher cost of sales Consolidated Income Statement Key Data (For the six months ended June 30) | Item | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Revenue | 11,479,938 | 10,756,489 | | Gross Profit | 1,635,940 | 1,771,166 | | Operating Profit | 702,106 | 751,497 | | Profit Before Tax | 650,685 | 730,318 | | Profit for the Period | 503,829 | 570,032 | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period decreased to RMB 434 million, a 30.7% year-on-year reduction, primarily due to an exchange difference loss of approximately RMB 69.57 million from translating overseas operations - Total comprehensive income for the period was **RMB 434 million**, a significant decrease from **RMB 626 million** in the prior year, mainly due to the exchange difference from overseas operations turning from a gain to a loss[3](index=3&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2024, total assets increased to RMB 29.68 billion, total liabilities rose to RMB 17.23 billion, and net assets slightly increased to RMB 12.45 billion, driven by growth in current assets and liabilities Balance Sheet Summary | Item | As at June 30, 2024 (RMB '000) | As at December 31, 2023 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 29,679,098 | 27,587,424 | | Total Liabilities | 17,230,106 | 15,213,780 | | Net Assets | 12,448,992 | 12,373,644 | [Consolidated Statement of Changes in Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, equity attributable to equity holders decreased to RMB 10.93 billion from RMB 11.23 billion at the beginning of the year, influenced by profit for the period, payment of 2023 final dividends, and exchange differences - During the reporting period, the company paid **RMB 563.5 million** in final dividends for 2023 to its shareholders[8](index=8&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the basis of financial statement preparation, accounting policies, revenue segmentation, key income statement items, earnings per share, and receivables and payables [Basis of Preparation and Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial report is prepared in accordance with HKAS 34, reviewed by KPMG, and incorporates newly adopted HKFRS standards which had no material impact on the Group - The financial report is prepared in accordance with Hong Kong Accounting Standards and incorporates newly revised standards, which have not had a material impact on the Group[9](index=9&type=chunk)[10](index=10&type=chunk) [Revenue and Segment Reporting](index=9&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from goods sales and engineering contracts across three segments: Clean Energy, Chemicals & Environment, and Liquid Food, with Clean Energy being the largest and fastest-growing contributor while Chemicals & Environment revenue significantly declined Revenue Performance by Segment (For the six months ended June 30) | Segment | 2024 Revenue (RMB '000) | 2023 Revenue (RMB '000) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Clean Energy | 7,876,340 | 6,293,551 | +25.1% | | Chemicals & Environment | 1,296,698 | 2,450,832 | -47.1% | | Liquid Food | 2,306,900 | 2,012,106 | +14.7% | | **Total** | **11,479,938** | **10,756,489** | **+6.7%** | [Key Income Statement Items](index=13&type=section&id=Key%20Income%20Statement%20Items) During the period, finance costs increased from RMB 38.43 million to RMB 48.07 million, R&D costs rose to RMB 331 million, and share-based payment expenses significantly increased to RMB 78.43 million, impacting profitability - Finance costs increased by **25.1%** year-on-year to **RMB 48.07 million**[21](index=21&type=chunk) - Research and development costs totaled **RMB 331 million**, an increase from **RMB 319 million** in the prior year[22](index=22&type=chunk) - Share-based payment expenses were **RMB 78.43 million**, a significant increase of **120%** from **RMB 35.62 million** in the prior year[22](index=22&type=chunk) [Earnings Per Share](index=15&type=section&id=Earnings%20Per%20Share) During the reporting period, basic earnings per share decreased by 14.8% to RMB 0.241 from RMB 0.283 in the prior year, while diluted earnings per share fell by 11.9% to RMB 0.222 Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | | Diluted Earnings Per Share | RMB 0.222 | RMB 0.252 | [Receivables and Payables](index=16&type=section&id=Receivables%20and%20Payables) As of period-end, total trade and bills receivables were RMB 3.71 billion, stable from year-start, while total trade and bills payables increased by 16.1% to RMB 5.16 billion, with most due within three months - Total trade and bills receivables amounted to **RMB 3.71 billion**, with **83%** being current[30](index=30&type=chunk)[32](index=32&type=chunk) - Total trade and bills payables amounted to **RMB 5.16 billion**, with **75%** due within three months[32](index=32&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2024, having already paid the 2023 final dividend totaling RMB 563.5 million during the period - The Board decided not to declare an interim dividend for 2024[33](index=33&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's financial performance, operational highlights, and strategic outlook across its key business segments [Financial Review](index=19&type=section&id=Financial%20Review) In H1 2024, the Group's total revenue grew by 6.7%, driven by Clean Energy and Liquid Food segments, despite a decline in Chemicals & Environment, while new and on-hand orders reached record highs, though overall gross margin decreased to 14.3% and core profit slightly declined by 3.5% [Revenue Analysis](index=19&type=section&id=Revenue%20Analysis) Total revenue increased by 6.7% to RMB 11.48 billion, primarily driven by a 25.1% surge in the Clean Energy segment due to domestic natural gas consumption recovery, while Chemicals & Environment revenue significantly declined by 47.1% - The Clean Energy segment's revenue contribution increased from **58.5%** to **68.6%**, becoming the Group's most significant revenue source[37](index=37&type=chunk) - The Chemicals & Environment segment's revenue contribution decreased from **22.8%** to **11.3%**, mainly due to the sluggish chemical industry and slowing tank container demand[38](index=38&type=chunk) [New and On-hand Orders](index=20&type=section&id=New%20and%20On-hand%20Orders) The Group achieved strong growth and record highs in both new and on-hand orders, primarily driven by the Clean Energy segment's 70.7% surge in on-hand orders, despite year-on-year declines in Chemicals & Environment and Liquid Food new orders Order Status (RMB million) | Order Type | H1 2024 | H1 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | **Total New Orders** | **16,399** | **12,666** | **+29.5%** | | - Clean Energy | 12,919 | 7,912 | +63.3% | | - Chemicals & Environment | 1,688 | 2,309 | -26.9% | | - Liquid Food | 1,792 | 2,445 | -26.7% | | **Total On-hand Orders (Period-end)** | **29,351** | **20,602** | **+42.5%** | | - Clean Energy | 22,933 | 13,438 | +70.7% | | - Chemicals & Environment | 1,522 | 2,095 | -27.4% | | - Liquid Food | 4,896 | 5,069 | -3.4% | [Gross Margin and Profitability](index=22&type=section&id=Gross%20Margin%20and%20Profitability) Overall gross margin decreased from 16.5% to 14.3%, primarily due to lower margins in the Chemicals & Environment segment from reduced capacity utilization and slight declines in Liquid Food due to rising overseas project costs, while Clean Energy's margin slightly increased - The Group's overall gross margin decreased by **2.2 percentage points** to **14.3%**[41](index=41&type=chunk) - The effective tax rate increased from **21.9%** to **22.6%**, due to a decreased profit contribution from high-tech enterprises enjoying preferential tax rates[44](index=44&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintains a sound financial position with RMB 7.25 billion in cash and equivalents at period-end, while the gearing ratio increased from 21.2% to 24.7%, and operating activities generated a net cash inflow of RMB 617 million Key Financial Ratios | Metric | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB '000) | 7,246,810 | 6,998,191 | | Interest-bearing Liabilities (RMB '000) | 3,078,491 | 2,626,935 | | Gearing Ratio | 24.7% | 21.2% | - Operating activities recorded a net cash inflow of **RMB 617 million**, primarily due to an increase in contract liabilities[47](index=47&type=chunk) [Assets and Liabilities](index=25&type=section&id=Assets%20and%20Liabilities) As of period-end, total assets increased to RMB 29.68 billion and total liabilities to RMB 17.23 billion, resulting in a slight net asset increase to RMB 12.45 billion, with net assets per share rising from RMB 6.101 to RMB 6.138 - Total assets increased by **7.6%** from the beginning of the year, while total liabilities increased by **13.3%**[50](index=50&type=chunk) [Other Disclosures](index=25&type=section&id=Other%20Disclosures) The Group's contingent liabilities, primarily performance guarantees, significantly increased to RMB 6.67 billion at period-end, capital expenditure rose to RMB 392 million, and total employees grew to approximately 11,000 - Capital expenditure was **RMB 392 million**, a **21.5%** year-on-year increase, primarily for capacity enhancement and general maintenance[54](index=54&type=chunk) - Total employees numbered approximately **11,000**, with total staff costs of **RMB 1.36 billion**, a **14.3%** year-on-year increase[55](index=55&type=chunk) [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) This section provides a detailed review of the performance, strategic outlook, and research and development initiatives for each of the Group's core business segments [Clean Energy Segment](index=27&type=section&id=Clean%20Energy%20Segment) The Clean Energy segment, a core business, showed strong performance in H1 2024 with significant revenue and order growth, driven by high demand in natural gas heavy trucks, green shipping trends, and accelerated hydrogen energy development, with an optimistic outlook for transitioning into a comprehensive service provider amidst global LNG demand growth and energy transition [Business Review](index=27&type=section&id=Clean%20Energy%20Business%20Review) Driven by the economic advantages of natural gas, LNG vehicle cylinder sales revenue surged by 711% due to increased natural gas heavy truck sales, while overseas land-based clean energy new orders grew by 48.8%, and hydrogen energy projects advanced with policy support - Domestic natural gas heavy truck sales increased by **104%** year-on-year, driving the Group's LNG vehicle cylinder sales revenue to approximately **RMB 720 million**, a **711%** surge year-on-year[59](index=59&type=chunk) - The marine clean energy business secured **16 new vessel orders** during the period and is actively developing green methanol fuel solutions[60](index=60&type=chunk) - Hydrogen energy projects are accelerating with policy support, as the Group secured or delivered projects in hydrogen production, storage, transportation, and refueling stations[61](index=61&type=chunk)[62](index=62&type=chunk) [Outlook and Strategy](index=30&type=section&id=Clean%20Energy%20Outlook%20and%20Strategy) Global LNG demand, particularly in China, is expected to drive opportunities for the Group's LNG equipment and engineering, while green shipping and inland waterway 'oil-to-gas' conversions offer vast potential for marine business, and hydrogen energy's inclusion in national energy systems accelerates industrialization, leading the Group to extend its strategy from 'equipment + engineering' to a 'comprehensive service provider' - Goldman Sachs forecasts global LNG investment to grow by over **50%** by 2029, and Shell predicts global LNG demand to increase by over **50%** by 2040, with China as a key driver[63](index=63&type=chunk)[64](index=64&type=chunk) - The Group's strategic positioning will gradually extend from 'equipment + engineering' to a 'comprehensive service provider', transforming into a technology-driven, low-carbon, smart new energy solution provider[67](index=67&type=chunk) [Research and Development](index=33&type=section&id=Clean%20Energy%20Research%20and%20Development) Significant R&D achievements include developing new products and upgrading technologies, participating in national and industry standards, completing international underwater CO2 storage tank container development, delivering the world's first large vertical marine fuel tank, and making major strides in hydrogen energy, with commercial liquid hydrogen storage tanks entering type testing and Type IV hydrogen cylinder production lines entering commissioning - Breakthroughs in hydrogen energy R&D include commercial liquid hydrogen storage tanks and tank trucks entering type testing, with Type IV hydrogen cylinders expected to achieve mass production in the second half of the year[74](index=74&type=chunk) - The development of international underwater CO2 storage tank containers has been completed, with mass sales achieved[71](index=71&type=chunk) [Chemicals & Environment Segment](index=35&type=section&id=Chemicals%20%26%20Environment%20Segment) Affected by the weak global chemical industry recovery, the tank container market demand slowed, leading to a significant revenue decline for this segment in H1, yet the company maintained its global market leadership, with long-term growth supported by multimodal transport policies and stricter chemical safety requirements, while future focus includes emerging industries and aftermarket services [Business Review](index=35&type=section&id=Chemicals%20%26%20Environment%20Business%20Review) Due to global economic impacts, the chemical industry is experiencing a weak recovery, leading to a slowdown in tank container market demand compared to previous high growth, yet the segment maintained its global market share leadership, with steady development in medical equipment components and ongoing progress in aftermarket services - According to ITCO statistics, the global tank container fleet's compound annual growth rate was **8%** (2013-2023), maintaining a long-term upward trend[76](index=76&type=chunk) [Outlook and Strategy](index=37&type=section&id=Chemicals%20%26%20Environment%20Outlook%20and%20Strategy) National policies promoting multimodal transport and shifting bulk cargo from road to rail and water offer long-term benefits for the tank container industry, while the segment will focus on new energy and high-tech industries, enhance product intelligence, and accelerate global expansion of aftermarket services - National policies emphasize reducing logistics costs, optimizing transport structures, and supporting the development of multimodal transport with 'single bill' and 'single container' systems, benefiting the tank container industry[77](index=77&type=chunk) - Strategic focus is on new application scenarios, including high-tech industries such as battery electrolytes and semiconductor chips, and actively entering the biopharmaceutical industry[78](index=78&type=chunk) [Research and Development](index=39&type=section&id=Chemicals%20%26%20Environment%20Research%20and%20Development) R&D focuses on providing comprehensive logistics solutions, successfully developing and mass-producing the world's largest 52-foot tank container as a rail tank car alternative, operating over ten thousand devices on its smart IoT platform with remote upgrade capabilities, and advancing in eco-friendly coating and welding automation technologies - Successfully developed and mass-produced the world's largest **52-foot tank container**, which can be used to replace rail tank cars[80](index=80&type=chunk) [Liquid Food Segment](index=40&type=section&id=Liquid%20Food%20Segment) The Liquid Food segment achieved steady revenue growth in H1, with its business entity 'CIMC ENRIC Alcohol Technology' successfully listed on the New Third Board, despite a year-on-year decline in new orders due to rising overseas costs and weak consumption, while future strategy focuses on consolidating leadership in beer and spirits, seizing domestic market transformation opportunities, and expanding into diversified fields like biomanufacturing [Business Review](index=40&type=section&id=Liquid%20Food%20Business%20Review) The segment's business entity, CIMC ENRIC Alcohol Technology Co Ltd, was officially listed on the New Third Board on August 8, 2024, while the company mitigates challenges from rising overseas costs and changing consumer behavior by focusing on domestic market opportunities - The segment's business entity, CIMC ENRIC Alcohol Technology Co Ltd (CIMC ENRIC Alcohol Technology), was officially listed on the New Third Board on **August 8, 2024**, with stock code: **872914**[81](index=81&type=chunk)[83](index=83&type=chunk) [Outlook and Strategy](index=41&type=section&id=Liquid%20Food%20Outlook%20and%20Strategy) Global population growth, expanding middle class, and focus on sustainable production are key industry drivers, prompting the company to consolidate its leadership in beer and spirits, expand into other advantageous sectors, and capitalize on market growth from clients' carbon neutrality transitions - Future focus will be on carbon neutrality transformation and upgrade opportunities for global and domestic breweries, solid fermentation, distilleries, and biopharmaceutical plants, aiming to increase the revenue contribution from China operations[84](index=84&type=chunk) [Research and Development](index=42&type=section&id=Liquid%20Food%20Research%20and%20Development) R&D activities continue, including exploring industrial-grade complex distillation systems, developing energy-efficient mechanical vapor recompression solutions for the whiskey industry, deeply participating in China's Baijiu industry technological upgrades, and engaging in multiple collaborative public research projects with universities - R&D directions include industrial-grade distillation systems, energy-saving solutions for the whiskey industry, and technological equipment upgrades for China's Baijiu industry chain[87](index=87&type=chunk) [Corporate Governance and Other Information](index=42&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's adherence to corporate governance principles and details securities transactions during the reporting period [Corporate Governance](index=42&type=section&id=Corporate%20Governance) The company consistently complied with all code provisions of the HKEX Corporate Governance Code during the reporting period, and the Audit Committee reviewed the interim financial report - The company confirmed compliance with all corporate governance code provisions during the reporting period[88](index=88&type=chunk) [Securities Transactions](index=43&type=section&id=Securities%20Transactions) During the reporting period, the trustee of the 2020 Share Award Scheme purchased 300,000 company shares on the Stock Exchange, with no other trading or redemption of listed securities by the company or its subsidiaries - Under the 2020 Share Award Scheme, the trustee purchased **300,000 company shares** during the period[89](index=89&type=chunk)

Investment Rating - The report indicates a positive outlook for the company, highlighting it as a quality red-chip stock with high dividend potential and favorable industry conditions [4][44]. Core Insights - The company, CIMC Anrui (03899.HK), is positioned in the energy, chemical, and liquid food equipment sector, contributing significantly to its parent group, CIMC [12][19]. - The energy sector has shown strong performance, with a 26% annualized return over the past three years, outperforming the Hang Seng Index [2][3]. - The company has experienced substantial revenue growth, with a 21% increase in revenue from 2021 to 2023, reaching 236 billion yuan [18][19]. - The clean energy segment is the core business, accounting for over 63% of revenue, with significant growth in hydrogen energy [21][24]. - The company has a strong dividend payout ratio of 49% in 2023, the highest in its history, reflecting its robust financial performance [39][40]. Summary by Sections Company Overview - CIMC Anrui was established in 2004 and is a member of CIMC Group, which is a leading logistics and energy equipment supplier [6][8]. - The company has diversified operations, including container manufacturing, energy equipment, and logistics services [10][11]. Financial Performance - In 2023, the company reported a net profit of 11.6 billion yuan, with a net profit margin of 4.9% [37][40]. - The company has maintained a stable ROE of 9.4%, which is significantly higher than its peers in the LNG storage and terminal application sector [41][42]. Business Segments - The clean energy segment has shown resilience and growth, with a revenue increase of 59% in the hydrogen energy business [21][24]. - The chemical environment segment has faced challenges, with a 16% decline in revenue in 2023, attributed to cyclical industry factors [28][29]. - The liquid food equipment segment has been stable, with a 19% revenue increase in 2023, supported by strategic acquisitions [33]. Market Conditions - The energy sector is currently experiencing a high demand due to favorable policies and recovering natural gas consumption post-pandemic [22][25]. - The company is well-positioned to benefit from potential tax reductions on dividends for red-chip stocks, enhancing its attractiveness to investors [3][4].

Company and Industry Summary Company Overview - The company is actively engaging with investors and has a dedicated Investor Relations President to communicate recent developments and highlights [1] Key Points and Arguments - The company is presenting its latest updates and key highlights to investors, indicating a proactive approach in investor relations [1] Other Important Content - The communication emphasizes the importance of investor engagement and transparency regarding the company's performance and strategic direction [1]

Company and Industry Summary Company Overview - The company is introducing its latest developments and highlights to investors during the conference call [1] Key Points - The Investor Relations President is leading the discussion and expressing gratitude to the investors for their participation [1] Additional Important Content - The company emphasizes the importance of communication with investors and is open to discussions at any time [1]

Financial Data and Key Metrics Changes - The company achieved record high revenue and net profit last year, with a revenue growth of 20.5% and a net profit compound annual growth rate of 27% [1][2] - The payout ratio increased to 50%, with operating cash flow exceeding net profit at 1.78 billion [1][2] - Inventory turnover days improved year-on-year, enhancing operational efficiency, while the debt-to-asset ratio was further optimized [1] Business Line Data and Key Metrics Changes - The clean energy business saw a 7.7% year-on-year increase in natural gas consumption, with a 12.2% growth in the first quarter [1] - The liquid food business accounted for 89-90% of revenue, primarily driven by overseas markets, with significant growth in industrial beer in Latin America and Southeast Asia [2] - The shipbuilding business experienced high growth, with nearly 20 new vessels signed and orders reaching 12.35 billion by the end of March [1][3] Market Data and Key Metrics Changes - New orders for clean energy increased by 100% year-on-year, with overseas land clean energy orders growing by 61% [2][3] - The company established a presence in the Americas, Europe, Africa, and Southeast Asia, with over 2 billion in revenue from overseas markets last year, a 3% increase [1] Company Strategy and Development Direction - The company is transitioning from equipment manufacturing to a comprehensive service provider, with plans to produce 15,000 tons of hydrogen and 100,000 tons of LNG annually by 2027 [1][2] - The focus is on developing low-carbon solutions and expanding capacity in green formaldehyde and hydrogen production [1][2] Management Comments on Operating Environment and Future Outlook - Management noted that the significant growth in clean energy orders is due to strong performance across all business lines, particularly in maritime clean energy [3] - The company expects double-digit revenue growth this year, with the clean energy segment projected to grow by no less than 20% [5] Other Important Information - The company is advancing its direct listing process on the Beijing Stock Exchange [4] - The green methanol market is expected to grow, with ongoing projects to enhance production efficiency and reduce costs [4] Q&A Session Summary Question: Will the domestic white liquor sales slowdown affect future collaborations in domestic distilleries? - The company has undertaken white liquor technology upgrades and sees it as an important business direction, with a higher contribution from beer in the revenue structure [2] Question: Will the company maintain a 50% payout ratio or consider increasing dividends? - The payout ratio was previously 40% and has been raised to 50%. Future capital expenditures are expected to remain around 10 billion, maintaining the current dividend ratio [2] Question: What are the reasons for the significant growth in clean energy orders this year? - The growth is attributed to strong performance in various business lines, especially maritime clean energy, with a 100% increase in new clean energy orders [3] Question: What is the expected scale of ship deliveries this year? - The company has a full production schedule and is negotiating potential projects, focusing on improving existing capacity efficiency [3] Question: What is the status of the green methanol project as a future shipping fuel? - Green methanol is gaining attention in shipping due to its storage and transportation characteristics, with ongoing projects to enhance production [4] Question: How is the order distribution for green methanol, liquid ammonia, and liquid hydrogen? - The company has signed orders for vessels capable of transporting liquefied petroleum gas and liquid ammonia, with LNG being the primary business focus [4] Question: What is the revenue and gross margin guidance for each segment this year? - The company expects double-digit revenue growth across segments, with clean energy growth projected at no less than 20% [5] Question: Are there any orders for hydrogen electrolyzers? - Yes, orders in the chemical environment segment are growing, with production expected to resume in June [5] Question: How is the shipbuilding business's order situation? - The shipbuilding business is set to deliver old orders, with full capacity and expected margin improvements [6] Question: What is the profitability outlook for upstream gas-to-hydrogen projects? - The profitability is expected to be good, with production capacity gradually increasing and contributing to profits next year [7]

Investment Rating - The report assigns a "Buy" rating to the company, CIMC Enric (3899.HK) [1]. Core Insights - CIMC Enric is a leading player in clean energy and chemical tank equipment, with a well-established global presence and a combination of growth and dividend value [1]. - The company's revenue for 2023 reached 23.63 billion yuan, a year-on-year increase of 20.5%, with a net profit attributable to shareholders of 1.11 billion yuan, up 5.6% year-on-year [1][10]. - The clean energy segment contributed over 60% of the company's revenue in 2023, covering natural gas, petroleum gas, and hydrogen industries [1][10]. - The company has a balanced revenue contribution from domestic and overseas markets, with 51.5% from domestic and 48.5% from overseas in 2023 [1]. Summary by Sections Clean Energy - The clean energy segment is expected to benefit from the rising demand in the global natural gas industry, with a projected revenue of 14.91 billion yuan in 2023, reflecting a year-on-year growth of 40.8% and a gross margin of 12.8% [1][18]. - The company has established a comprehensive industrial chain for onshore clean energy, with major products including LNG, LPG, and CNG equipment, leading the domestic market in production and sales [1][20]. - The offshore clean energy business saw a revenue increase of 74% in 2023, reaching 2.2 billion yuan, driven by the growing demand for clean energy vessels [1][18]. Chemical Environment - The chemical environment segment generated 4.41 billion yuan in revenue in 2023, a decrease of approximately 17% due to market conditions [2]. - The company is focusing on expanding its after-market services and medical equipment sectors, which have shown promising growth [2]. Liquid Food - The liquid food segment achieved a revenue of 4.29 billion yuan in 2023, up 18.6% year-on-year, with significant progress in overseas beer projects and new business areas such as spirits and biopharmaceuticals [2][10]. - The company has a strong global customer base and has completed its capacity layout, positioning itself well to benefit from the beverage industry's growth [2]. Financial Forecast - The company is expected to see a steady increase in net profit, with projections of 1.36 billion yuan, 1.63 billion yuan, and 1.81 billion yuan for 2024, 2025, and 2026 respectively [3][4]. - The current stock price corresponds to a PE ratio of 11, 9, and 8 for the years 2024 to 2026, indicating a favorable valuation [3][4]. Dividend Policy - The company has maintained a dividend payout ratio above 38% since 2019, reaching a new high of approximately 49% in 2023, with a dividend yield of 3.7% [12][10].

Investment Rating - The report maintains a rating of "Accumulate" for the company [1] Core Views - The chemical sector is expected to have a short-term drag, while the energy equipment sector is projected to bring long-term growth certainty [1] - Strong orders in the energy sector ensure robust growth for the company in the coming years, with multiple collaborative projects in clean energy expected to enhance revenue [1][2] - The company achieved a revenue of 23.63 billion RMB in 2023, a year-on-year increase of 20.5%, with net profit rising by 7.2% to 1.16 billion RMB [2][4] Financial Performance Summary - Revenue for Q1 2024 decreased by 6.8% to 4.635 billion RMB, with the clean energy segment growing by 21.2% to 3.255 billion RMB, while the chemical environment segment fell by 58.6% to 562 million RMB [2] - New orders in the clean energy segment surged from 3.101 billion RMB to 6.208 billion RMB year-on-year, while total new orders increased from 5.509 billion RMB to 7.478 billion RMB [2] - As of March 31, 2024, the backlog of orders in the clean energy segment rose from 11.712 billion RMB to 20.011 billion RMB [2] Future Projections - Revenue projections for 2024-2026 are 27.84 billion RMB, 31.62 billion RMB, and 37.34 billion RMB, with expected growth rates of 17.8%, 13.6%, and 18.1% respectively [3][4] - The net profit attributable to shareholders is projected to be 1.233 billion RMB, 1.488 billion RMB, and 1.938 billion RMB for the same period, with growth rates of 10.7%, 20.7%, and 30.2% respectively [3][4]

[Table_Page] 公告点评|能源Ⅱ 证券研究报告 [【Table_T广itle] 发 机械&海外】中集安瑞科 [公Tab司le_I评nves级t] 买入 当前价格 7.64港元 （03899.HK） 合理价值 8.97港元 前次评级 买入 清洁能源订单高增，罐箱业绩+库存双触底 报告日期 2024-04-27 [ 核Tabl 心e_Su 观mm 点ary] ： [相Tab对le_P市icQ场uote表] 现 ⚫ 清洁能源收入快速增长，罐箱&食品业务拖累。公司发布一季度自愿披 20% 12% 露公告，24Q1实现收入46.35亿元，同比-6.8%；其中清洁能源、化 3% 工罐箱、液态食品收入分别32.55/5.62/8.18亿元，同比增速+21.2%/ -5%04/23 06/23 08/23 10/23 12/23 02/24 04/24 -58.6%/-11.7%。细分板块来看，水上清洁能源、氢能、LNG车用瓶在 -14% 一季度实现了高速增长，根据公司 24Q1 业绩推介材料，水上清洁能 -22% 中集安瑞科 恒生指数 源板块增速亮眼，收入7.3亿元，同比+48.6%；氢能业务收入1.69亿 元， ...