CNCEC(SH:601117) Tianfeng Securities·2024-03-14 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [5]. Core Insights - The company has achieved a strong order intake in the first two months of 2024, with new signed orders amounting to 90.712 billion yuan, representing a year-on-year increase of 28.3% [1]. - The company is expected to benefit from overseas business growth, particularly in the context of the Belt and Road Initiative, which is anticipated to enhance revenue and profit elasticity [2]. - The company has adjusted its net profit forecasts for 2023-2025 to 5.4 billion, 6.0 billion, and 7.0 billion yuan respectively, reflecting a year-on-year growth of 0.3%, 10.7%, and 16.9% [2]. Summary by Sections Order Growth - In January-February 2024, the company signed new orders in various sectors: chemical engineering (68.132 billion yuan, +28%), infrastructure (14.902 billion yuan, +17.9%), and environmental governance (4.052 billion yuan, +195.8%) [2]. - The average contract amount for new orders was 0.87 billion yuan, with significant contracts over 5 billion yuan accounting for 40.35% of total new orders [2]. Financial Performance - The company's revenue for 2023 is projected at 168.358 billion yuan, with a growth rate of 6.26% [4]. - The net profit attributable to the parent company is forecasted to be 5.432 billion yuan for 2023, with a minimal growth rate of 0.31% [4]. - The company's P/E ratio is currently at 7.69, indicating a relatively low valuation compared to historical levels [4]. Shareholder Confidence - The major shareholder, China Chemical Engineering Group, has announced plans to increase its stake in the company by 200 to 400 million yuan, reflecting confidence in the company's future [3]. - As of March 13, 2024, the company's P/E and P/B ratios are 7.7 and 0.75 respectively, both at historical low percentiles since 2010 [3].