CIMC(SZ:000039) Soochow Securities·2024-07-15 12:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve a net profit attributable to shareholders of 7.0-9.5 billion yuan in the first half of 2024, representing a year-on-year increase of 76%-138%, with a median estimate of 8.25 billion yuan, which is a 107% increase year-on-year [3] - The significant improvement in operating performance is attributed to the recovery in the container industry and the improved foreign exchange hedging strategy of the group [3][4] - The container segment is experiencing both volume and price increases, benefiting from a recovery in demand and lower steel prices, which constitute about 50% of manufacturing costs [4] - The offshore engineering business is also seeing a recovery, with a full order book and expected growth in contracts for offshore drilling platforms and special vessels [5] Financial Forecasts and Valuation - The company’s projected net profits for 2024-2026 are 24.7 billion yuan, 32.9 billion yuan, and 47.5 billion yuan respectively, with corresponding P/E ratios of 18, 14, and 9 times [5] - The total revenue is forecasted to increase from 1,278 billion yuan in 2023 to 1,710 billion yuan in 2026, with a compound annual growth rate of approximately 8.32% [2][10] - The latest diluted EPS is expected to rise from 0.08 yuan in 2023 to 0.88 yuan in 2026 [2][11]