CNECC(SH:601611) Tianfeng Securities·2024-08-08 12:31Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 8.91 CNY based on a 11x PE for 2024 [4][6]. Core Viewpoints - The nuclear power engineering industry is experiencing accelerated growth, and the company is expected to benefit significantly from this trend, with a projected compound annual growth rate (CAGR) of 16.25% for net profit from 2023 to 2026 [1][2]. - The company has shown strong performance since its listing in 2016, with a revenue CAGR of 14.8% and a net profit CAGR of 14.5% from 2016 to 2023 [1][14]. - The company is the largest and most integrated nuclear power engineering construction enterprise in China, with a significant market share in the nuclear island construction segment [1][2]. Summary by Sections Company Overview - The company is a leading nuclear power engineering construction enterprise under the China National Nuclear Corporation (CNNC), with a history of 39 years in nuclear power construction [1][14]. - The main business segments include nuclear power engineering and industrial and civil engineering, with revenue contributions of 22% and 69% respectively in 2023 [1][14]. Industry Outlook - The nuclear power industry in China has seen a rapid increase in approvals and investments since 2019, with a CAGR of 29.7% in completed nuclear power investments from 2019 to 2023 [2][42]. - The expected CAGR for installed nuclear power capacity from 2024 to 2030 is approximately 8.76% [2][42]. - The government has set ambitious targets for nuclear power development, aiming for a significant increase in operational capacity by 2025 [2][38]. Financial Forecast and Investment Recommendations - The company is projected to achieve net profits of 2.44 billion CNY in 2024, 2.81 billion CNY in 2025, and 3.24 billion CNY in 2026, reflecting year-on-year growth rates of 18%, 15%, and 15.5% respectively [4][5]. - The report highlights the company's strong earnings growth potential, supported by a favorable industry environment and increasing demand for nuclear power [1][4]. Performance Metrics - The company's revenue for 2023 is estimated at 109.39 billion CNY, with a growth rate of 10.34% [5]. - The net profit for 2023 is projected to be 2.06 billion CNY, reflecting a growth rate of 17.57% [5]. - The company maintains a healthy financial position, with a debt-to-asset ratio of 82.29% [6].