Tianfeng Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [6]. Core Views - The company achieved a total revenue of 1,137.99 billion yuan in 2023, a year-on-year increase of 3.8%, while the net profit attributable to shareholders was 26.10 billion yuan, a decrease of 2.19% year-on-year [1][4]. - The cash dividend amount for 2023 was 4.75 billion yuan, with a cash dividend ratio of 20.18%, an increase of 5.9 percentage points compared to 2022, resulting in a dividend yield of 4.5% based on the closing price on March 28 [1]. - The company signed new contracts worth 32,938.7 billion yuan in 2023, a year-on-year increase of 1.5%, with a total backlog of orders amounting to 50,021 billion yuan, approximately 4.4 times the revenue for 2023, providing strong support for future revenue growth [2][4]. Financial Performance Summary - The company's gross profit margin improved slightly to 10.4% in 2023, an increase of 0.3 percentage points year-on-year, while the net profit margin was 2.84%, a decrease of 0.06 percentage points year-on-year [3]. - Operating cash flow (CFO) for 2023 was 20.41 billion yuan, a significant decrease of 35.72 billion yuan year-on-year, indicating potential for improvement in cash flow management [3]. - The company expects net profit attributable to shareholders to grow to 28.0 billion yuan, 30.1 billion yuan, and 31.9 billion yuan in 2024, 2025, and 2026, respectively, reflecting a growth rate of 7%, 7%, and 6% year-on-year [4][5]. Valuation Metrics - The company's current price-to-earnings (P/E) ratio is 4.46, and the price-to-book (P/B) ratio is 0.38, indicating a low valuation compared to historical levels [5][6]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.06 yuan, 2.21 yuan, and 2.35 yuan, respectively, showing a gradual increase in profitability [5].