CIMC ENRIC(03899) 光大证券·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, citing its strong growth potential in LNG and hydrogen energy sectors, supported by favorable policies [2][4] Core Views - The company achieved steady revenue growth in 2023, with total revenue reaching RMB 23.63 billion, a 20.5% YoY increase, and net profit attributable to shareholders growing 5.6% YoY to RMB 1.11 billion [2] - Despite a slight decline in gross margin to 15.7% (down 1.7 percentage points YoY), the company's operating cash flow remained strong at RMB 1.78 billion [2] - The company's new orders and backlog reached record highs, with new orders increasing 31.5% YoY to RMB 26.64 billion and backlog growing 29.8% YoY to RMB 22.8 billion [2] - The hydrogen energy business showed robust growth, with revenue surging 59.0% YoY to RMB 700 million, and backlog increasing 18.7% YoY to RMB 335 million [2] Financial Performance - The company's revenue is expected to grow steadily, with forecasts of RMB 27.65 billion, RMB 31.18 billion, and RMB 34.51 billion for 2024E, 2025E, and 2026E, respectively [3] - Net profit is projected to increase to RMB 1.42 billion, RMB 1.74 billion, and RMB 1.97 billion for 2024E, 2025E, and 2026E, respectively, with EPS of RMB 0.70, RMB 0.86, and RMB 0.97 [3] - ROE is expected to improve from 9.9% in 2023 to 11.6%, 13.0%, and 13.5% in 2024E, 2025E, and 2026E, respectively [3] Business Segments - The clean energy segment saw significant growth, with revenue increasing 40.8% YoY to RMB 14.91 billion, driven by strong demand for LNG and industrial gases [2] - The chemical environment segment revenue declined 15.8% YoY to RMB 4.41 billion due to a slowdown in global tank container demand [2] - The liquid food segment revenue grew 18.6% YoY to RMB 4.29 billion, supported by increased new orders [2] Hydrogen Energy Developments - The company made breakthroughs in hydrogen energy, including the successful launch of a coke oven gas-to-hydrogen and LNG co-production project [2] - It developed the first 40 cubic meter commercial liquid hydrogen tanker and a 40-foot liquid hydrogen tank, marking a milestone in national R&D projects [2] - The company completed the construction of a hydrogen cylinder and supply system production base and delivered Hong Kong's first skid-mounted hydrogen refueling station [2] Valuation Metrics - The company's P/E ratio is projected to decrease from 12.0 in 2023 to 9.5, 7.7, and 6.8 in 2024E, 2025E, and 2026E, respectively [3] - The P/B ratio is expected to decline from 1.2 in 2023 to 1.1, 1.0, and 0.9 in 2024E, 2025E, and 2026E, respectively [3]