Guotai Junan Securities·2024-03-28 16:00Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 11.50, which corresponds to a PE ratio of 7.4 times for 2024 [2][5][7]. Core Insights - The company's net profit attributable to shareholders increased by 7.1% in 2023, aligning with expectations, with a quarterly growth of 14.7% in Q4. The revenue for 2023 reached 1.26 trillion yuan, reflecting a 9.5% increase [5][12]. - The company plans for a revenue increase of 2.9% in 2024, with new contract signings expected to rise by 6.4% [5][12]. - The report highlights improvements in cash flow, with operating cash flow of 38.4 billion yuan in 2023, despite a slight increase in accounts receivable and impairment [5][12]. Financial Summary - Revenue: 2023 revenue was 1,263,475 million yuan, with a projected increase to 1,377,135 million yuan in 2024, representing a 9% growth [5][7]. - Net Profit: The net profit attributable to shareholders for 2023 was 33,483 million yuan, with expectations of 38,316 million yuan in 2024, indicating a 14% increase [5][7]. - EPS: The earnings per share (EPS) for 2023 was 1.35 yuan, projected to rise to 1.55 yuan in 2024 [5][7]. - Profitability Ratios: The operating profit margin for 2023 was 4.0%, with a slight increase expected to 4.3% in 2024 [5][7]. Business Segmentation - Infrastructure Construction: Revenue from infrastructure construction in 2023 was 1.09 trillion yuan, up 11% year-on-year [12]. - Real Estate Development: Revenue from real estate development decreased by 5% to 509 million yuan in 2023 [12]. - Other Segments: The report indicates a mixed performance across different business segments, with some showing growth while others faced declines [12]. Market Performance - The stock has a 52-week price range of 5.39 to 9.30 yuan, with a current market capitalization of 168,552 million yuan [2][7]. - The average daily trading volume is 144.06 million shares, indicating active market participation [2][7]. Resource Projects - The report outlines various mineral resource projects, indicating potential for future profitability, particularly in copper and other minerals [11]. Conclusion - The report presents a positive outlook for the company, with expected growth in revenue and net profit, supported by strategic initiatives and market conditions [5][12].