CNCEC(SH:601117) EBSCN·2024-06-24 09:31Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown resilient growth in new contract signings, with a total of 167.4 billion yuan in new contracts from January to May 2024, representing an 18.1% year-on-year increase [2] - The company is actively expanding into strategic emerging industries, including new materials and high-end equipment manufacturing, while achieving significant operational load increases in its industrial business [3] - The company is expected to maintain strong profit growth, with projected net profits of 58.9 billion yuan, 64.2 billion yuan, and 71.2 billion yuan for 2024, 2025, and 2026 respectively [3] Summary by Sections New Contract Signings - From January to May 2024, the company signed new contracts worth 167.4 billion yuan, up 18.1% year-on-year, with significant contributions from chemical engineering contracts [2] - Domestic new contracts decreased by 2.8% year-on-year, while overseas contracts surged by 410% [2] Industrial Business Performance - As of May 2024, the company's industrial projects are operating at 45% capacity for the adiponitrile project and 83% for the aerogel project [3] - The company is focusing on overcoming key technological challenges and has made advancements in the production of high-performance nylon materials [3] Financial Projections - The company forecasts revenue growth from 195.9 billion yuan in 2024 to 231.8 billion yuan in 2026, with a net profit growth rate of 8.5% in 2024 [4] - The report highlights a stable P/E ratio of 8 for the forecasted years, indicating a favorable valuation [4]