CRRC(601766) 华鑫证券·2024-03-28 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1]. Core Insights - The company, China CNR Corporation, has shown steady growth in its performance, driven by the recovery in railway equipment demand and expansion in overseas markets [3][4]. - In 2023, the company achieved a revenue of 234.26 billion yuan, reflecting a year-on-year increase of 5.08%, and a net profit attributable to shareholders of 11.71 billion yuan, with a slight increase of 0.5% [3][7]. - The report highlights the significant growth in the railway equipment sector, with a projected increase in domestic and international orders, indicating a robust market outlook [4][6]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 234.26 billion yuan, with a net profit of 11.71 billion yuan, and a non-recurring net profit of 9.11 billion yuan, showing a year-on-year growth of 14.24% [3][7]. - The forecast for 2024-2026 indicates revenues of 258.81 billion yuan, 283.27 billion yuan, and 310.29 billion yuan, respectively, with corresponding EPS of 0.46 yuan, 0.53 yuan, and 0.58 yuan [7][11]. Market Dynamics - The railway equipment sector is experiencing a recovery, with China's railway fixed asset investment reaching 764.5 billion yuan in 2023, a year-on-year increase of 7.5% [4]. - The demand for new railway lines and the replacement of aging locomotives are expected to contribute positively to the company's performance [5]. Business Segments - The company reported a 4.01% growth in domestic revenue and a 13.75% increase in overseas revenue, with significant contributions from railway equipment and urban infrastructure sectors [6]. - The total new orders signed in 2023 amounted to approximately 298.6 billion yuan, with international orders accounting for about 58.4 billion yuan [6]. Profitability Metrics - The report projects a net profit growth rate of 13.2% for 2024, with a net profit of 13.26 billion yuan, and a return on equity (ROE) expected to rise from 6.0% in 2023 to 7.2% by 2026 [11].