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东华科技:风起新疆,出海远航-20250326

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4]. Core Views - The company is positioned as a leading comprehensive engineering firm in the chemical construction sector, with a robust growth trajectory supported by a solid order backlog and strategic partnerships [1][4]. - The company aims to leverage its strengths in coal chemical engineering and international markets to enhance its growth potential [2][3]. Summary by Sections Company Overview - The company, originally established as the Third Design Institute of the Ministry of Chemical Industry, has evolved into a leading comprehensive engineering company in China, focusing on technology-driven growth [1][14]. - The major shareholders include China Chemical and Shanxi Coal Group, which provide significant business synergies [1][19]. Business Segments - The company has a strong foothold in chemical engineering, with extensive experience in various sectors, including petrochemicals and environmental management [23]. - The engineering business remains the core revenue and profit source, while the environmental sector is gradually increasing its contribution [27]. Financial Performance - The company has demonstrated steady revenue growth, with a projected CAGR of 14% for revenue and 20% for net profit from 2020 to 2024 [1][37]. - The company reported a significant increase in new orders, with a total of 222.85 billion yuan in new contracts for 2024, reflecting a 24% year-on-year growth [50]. Market Opportunities - The coal chemical industry in Xinjiang is expected to see significant investment, with over 700 billion yuan in proposed projects, providing substantial order opportunities for the company [2]. - The company is actively expanding its international presence, with overseas orders reaching 53 billion yuan in 2023, marking a 177% increase year-on-year [3]. Investment Outlook - The company is expected to benefit from a strong order backlog, with orders amounting to approximately 498 billion yuan, which is 5.6 times its projected revenue for 2024 [50]. - The financial forecasts indicate a net profit of 500 million yuan in 2025 and 651 million yuan in 2026, with corresponding EPS of 0.71 yuan and 0.92 yuan per share [4].