CNCEC(SH:601117) Minsheng Securities·2024-07-08 23:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company has a solid cash position, with a dividend payout ratio of 20.04% based on a net profit of 5.426 billion yuan in 2023, indicating potential for significant increases in dividends in the future [2]. - The company experienced an 18.11% year-on-year increase in total contract value from January to May 2024, with overseas contracts growing by 410% [2]. - The company is focusing on innovation-driven development in high-performance fibers, high-end nylon new materials, and biodegradable plastics, with significant advancements in domestic production technology [2]. - The projected net profits for 2024-2026 are 6.216 billion yuan, 6.991 billion yuan, and 7.815 billion yuan respectively, with corresponding PE ratios of 8X, 7X, and 6X [2]. Financial Forecasts - Revenue for 2023 is projected at 179.196 billion yuan, with a growth rate of 13.1%, and expected to reach 209.542 billion yuan in 2024, reflecting a growth rate of 16.9% [3][7]. - The net profit attributable to shareholders is forecasted to be 5.426 billion yuan in 2023, increasing to 6.216 billion yuan in 2024, representing a growth rate of 14.6% [3][7]. - The company’s earnings per share (EPS) is expected to rise from 0.89 yuan in 2023 to 1.02 yuan in 2024 [3][7].