qscc(SH:600425) Tianfeng Securities·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.00 CNY, indicating an expected return of over 20% within the next six months [5][19]. Core Insights - The company achieved a total revenue of 4.49 billion CNY in 2023, representing a year-on-year growth of 20.01%, while the net profit attributable to the parent company was 463.38 million CNY, up 11.53% year-on-year [14][18]. - The cement business saw a revenue increase of 23.8% to 3.31 billion CNY, driven by fixed asset investment growth in Xinjiang, which rose by 12.4% year-on-year [15]. - The chemical segment, however, reported a loss of 200 million CNY, negatively impacting overall profitability [15][17]. Financial Summary - The company's total assets are projected to grow from 9.69 billion CNY in 2023 to 11.87 billion CNY by 2026, with a steady increase in cash and cash equivalents from 1.61 billion CNY in 2023 to 3.92 billion CNY in 2026 [6][18]. - The net profit margin for 2023 was 10.96%, a slight decrease of 0.30 percentage points compared to the previous year [16]. - The company’s earnings per share (EPS) is expected to rise from 0.29 CNY in 2023 to 0.51 CNY by 2026, reflecting a positive growth trajectory [18]. Market Position and Outlook - The company benefits from a favorable regional market position, particularly in Xinjiang, where infrastructure projects are expected to sustain demand for cement [17]. - Despite challenges in the chemical sector, the overall outlook remains optimistic due to the anticipated growth in the cement market driven by ongoing investments [17].