Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386) with a target price of HKD 5.21 [5][7]. Core Views - The company's 2023 performance met expectations, with a significant increase in new contracts for 2024, driven by overseas market expansion and accelerated development of emerging businesses [7][9]. - The company achieved a record high in new contracts signed in 2023, amounting to RMB 802.52 billion, representing a year-on-year growth of 10.7% [7][9]. - The report forecasts EPS for 2024-2026 at RMB 0.59, 0.64, and 0.67 respectively, reflecting continued growth potential [7][9]. Financial Summary - In 2023, the company's main revenue reached RMB 562.21 billion, a year-on-year increase of 6.0%, with net profit attributable to shareholders at RMB 23.35 billion, up 2.4% [7][10]. - The breakdown of revenue includes engineering contracting (RMB 319.87 billion), design consulting and technology licensing (RMB 38.22 billion), construction (RMB 252.79 billion), and equipment manufacturing (RMB 7.31 billion) [7][10]. - The company also reported a dividend increase, with a payout of RMB 0.343 per share, a 4.6% increase year-on-year, resulting in a dividend yield of 8.14% [7][10]. Market Expansion - The company has made significant strides in overseas markets, with new contracts signed abroad totaling USD 2.978 billion, a remarkable year-on-year increase of 181.2% [7][9]. - In 2023, the company entered the Saudi market and achieved a target of having one-third of its operations in international markets [7][9]. - The report highlights the signing of 230 contracts in the new energy and new materials sectors, totaling RMB 76.72 billion, indicating accelerated growth in emerging business areas [7][9]. Future Guidance - For 2024, the company has set a new contract guidance of RMB 600 billion domestically and USD 3 billion internationally, totaling approximately RMB 815.95 billion, which is an increase of RMB 13.43 billion compared to 2023 [7][9]. - The company has also initiated a share buyback program, repurchasing 13.275 million H-shares, which is 0.91% of the issued H-shares, and plans to continue this program [7][9].
2023年业绩点评：业绩符合预期，24年新签合同指引增长