GOLDEN SUN SECURITIES·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for China Railway Construction (601186.SH) [3] Core Views - The company's revenue grew steadily, with a total operating income of 1,138 billion yuan in 2023, an increase of 4% year-on-year. However, the net profit attributable to shareholders decreased by 2% to 26.1 billion yuan due to impairment losses [1] - The company plans to distribute a cash dividend of 3.50 yuan per 10 shares, resulting in a total cash dividend payout of 4.753 billion yuan, with a dividend payout ratio of 18.2%, significantly higher than the average of 13.9% from 2020 to 2022 [1] - The company signed new contracts worth 32,939 billion yuan in 2023, a year-on-year increase of 1.5%, with a significant improvement in the order book [1] Financial Performance Summary - Revenue: 2023 operating income was 1,138 billion yuan, up 4% from 2022. Quarterly revenue changes were +3%/-3%/+3%/+11% [1][2] - Net Profit: The net profit attributable to shareholders was 26.1 billion yuan, down 2% year-on-year, with a quarterly performance of +5%/-1%/+9%/-15% [1][2] - Earnings Per Share (EPS): The latest diluted EPS for 2023 was 1.92 yuan, with projections of 2.08 yuan for 2024 [2] - Profitability: The gross margin improved to 10.4%, an increase of 0.3 percentage points year-on-year [1] - Cash Flow: The company reported a net cash inflow from operating activities of 20.4 billion yuan in 2023, a significant decrease from 56.1 billion yuan in the previous year [1][2] Future Projections - Net Profit Forecast: Expected net profits for 2024, 2025, and 2026 are approximately 28.2 billion yuan, 30.1 billion yuan, and 31.9 billion yuan, respectively, indicating growth rates of 8.0%, 6.9%, and 5.8% [1][2] - Valuation Ratios: The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 4.1, 3.8, and 3.6, respectively, with a price-to-book (P/B) ratio of 0.47 [1][2]