C&D INC.(600153) ZHONGTAI SECURITIES·2024-02-04 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% within the next 6 to 12 months compared to the benchmark index [5]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 11.8 to 14.2 billion yuan for 2023, representing a year-on-year increase of approximately 88% to 126% [1][3]. - The significant increase in net profit is primarily attributed to the substantial reorganization gains from the acquisition of Meikailong, which added approximately 6.29 billion yuan to the net profit [1][3]. - However, the company's non-recurring net profit is projected to decline to 2.1 to 2.8 billion yuan, a decrease of about 24% to 43% year-on-year, mainly due to the impact of the real estate market and impairment provisions for certain projects [1][3]. Financial Performance Summary - The company's revenue is forecasted to grow from 832.81 billion yuan in 2022 to 1,014.72 billion yuan by 2025, with a compound annual growth rate (CAGR) of approximately 11% [1][3]. - Net profit is expected to fluctuate, with a significant increase to 13.34 billion yuan in 2023, followed by a decrease to 6.68 billion yuan in 2024, and a recovery to 7.74 billion yuan in 2025 [1][3]. - Earnings per share (EPS) are projected to rise from 2.09 yuan in 2022 to 2.58 yuan in 2025, reflecting the company's growth trajectory [1][3]. Business Segments - The supply chain business is anticipated to face short-term pressure on performance due to market fluctuations in commodity prices and a weak automotive sector, although market share is expected to continue growing [1][3]. - The real estate segment has shown positive sales growth, with total sales amounting to 564.9 billion yuan in 2023, a year-on-year increase of 14% [1][3]. Valuation Metrics - The report adjusts the company's valuation metrics, with the price-to-earnings (P/E) ratio expected to be 4.7 for 2023, decreasing to 3.7 by 2025 [1][3]. - The price-to-book (P/B) ratio is projected to decline from 0.6 in 2023 to 0.3 in 2025, indicating a potential undervaluation of the company's stock [1][3].