ACEG(SH:600502) Guotai Junan Securities·2024-03-27 16:00Investment Rating - The report maintains a rating of "Buy" for the company, with a target price of 7.50, indicating a potential upside from the current price of 4.95 [8][10]. Core Views - The company is transitioning from a traditional construction model to an integrated business model that combines investment, construction, and operation, aiming to increase the proportion of non-construction business [8][10]. - The company's net profit for 2023 is expected to grow by 13%, with significant improvement in operating cash flow [8][10]. - Revenue for 2023 is projected to reach 912 billion, reflecting a 14% increase year-on-year [8][10]. Summary by Sections Financial Performance - The company reported a net profit of 1,553 million for 2023, a 13% increase compared to the previous year [8][10]. - The gross profit margin improved to 11.67%, an increase of 0.49 percentage points [8][10]. - The company achieved new signed contracts worth 1,511 billion in 2023, marking a 14% increase [8][10]. Future Projections - For 2024, the company aims to achieve revenue of 975 billion, representing a growth rate of 6.9% [8][10]. - The earnings per share (EPS) forecast for 2024 is set at 1.04, with a projected increase to 1.34 by 2026 [8][10]. Market Position - The company is positioned as a leading state-owned enterprise in the construction industry, with a focus on infrastructure and real estate development [8][10]. - The report highlights the company's strong order backlog and its competitive advantage in local markets [8][10].