CCCC(SH:601800) Soochow Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in operating cash flow and strong performance in overseas business, with total revenue and net profit for 2023 reaching 758.676 billion yuan and 238.12 billion yuan, respectively, representing year-on-year growth of 5.1% and 23.6% [2][8] - The company is positioned to benefit from the "Belt and Road" initiative, with a focus on improving operational quality and maintaining a strong order backlog [2][8] Summary by Relevant Sections Financial Performance - In 2023, the company achieved total revenue of 758.676 billion yuan, with a year-on-year increase of 5.1%. The net profit attributable to shareholders was 238.12 billion yuan, up 23.6% year-on-year [2][8] - The company’s earnings per share (EPS) for 2023 was 1.46 yuan, with a projected P/E ratio of 5.89 for the same year [2][8] Business Segments - The infrastructure construction, design, and dredging segments generated revenues of 665.9 billion yuan, 47.3 billion yuan, and 53.4 billion yuan, respectively, with year-on-year changes of +5.2%, -6.0%, and +4.9% [2][8] - The overall gross margin for the company improved to 12.6%, an increase of 0.9 percentage points year-on-year [2][8] Geographic Performance - Domestic revenue was 642.5 billion yuan, a 3.1% increase, while overseas revenue reached 116.2 billion yuan, growing by 17.8% year-on-year [2][8] - The overseas business accounted for 15% of total revenue, up 1 percentage point from the previous year [2][8] Cash Flow and Investment - The company reported a net cash flow from operating activities of 12.074 billion yuan, a significant increase from 4.4 billion yuan in 2022 [2][8] - The net outflow from operating and investment activities was reduced to 43.8 billion yuan, down 2.4 billion yuan year-on-year [2][8] Order Backlog - The company signed new contracts worth 1.7532 trillion yuan in 2023, achieving 103.5% of its annual target, with overseas contracts increasing by 47.5% to 319.7 billion yuan [2][8] - As of the end of 2023, the total order backlog stood at 3.4507 trillion yuan, indicating a robust pipeline for future revenue [2][8] Profit Forecast and Valuation - The net profit forecasts for 2024 and 2025 have been raised to 258 billion yuan and 276 billion yuan, respectively, with a new forecast for 2026 set at 294 billion yuan [2][8] - The projected P/E ratios for 2024, 2025, and 2026 are 5.4, 5.1, and 4.8, respectively, indicating attractive valuation levels [2][8]