CPEC(600339) EBSCN·2025-01-14 03:06Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has secured a $513 million EPC contract with ADNOC, further solidifying its position in the overseas market [1][2] - The company has achieved significant growth in new contract signings, with a total of 94.263 billion yuan in new contracts for the first three quarters of 2024, representing a year-on-year increase of 17.62% [3] - The company is expected to benefit from domestic and international market opportunities, particularly under the "Belt and Road" initiative, which is anticipated to enhance its oil and gas engineering business [4] Summary by Sections Contract Wins - The company’s subsidiary has been awarded an EPC contract for LNG transportation pipelines, which includes a 26 km intake pipeline and a 155 km high-pressure output pipeline [2] Financial Performance - The company’s new contract amounts for 2024 show a breakdown of 711.66 billion yuan domestically (75.50%) and 230.97 billion yuan internationally (24.50%) [3] - The projected net profits for 2024-2026 are 853 million, 966 million, and 1.083 billion yuan respectively, with corresponding EPS of 0.15, 0.17, and 0.19 yuan per share [4] Market Opportunities - The company is expected to benefit from increased upstream capital expenditure in the oil and gas sector, projected at 213 billion yuan for 2024, which supports its engineering business [4] - The report highlights the acceleration of natural gas pipeline construction driven by policy, as well as opportunities in the refining sector due to the transformation of the domestic refining industry [4] Valuation Metrics - The company’s P/E ratios are projected to decrease from 26 in 2022 to 17 by 2026, indicating an improving valuation outlook [5][13]