CCCC(SH:601800) INDUSTRIAL SECURITIES·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for China Communications Construction Company (CCCC) [2][19] Core Views - CCCC's 2023 annual report shows a revenue of 758.68 billion yuan, a year-on-year increase of 5.10%, and a net profit attributable to shareholders of 23.81 billion yuan, up 23.61% year-on-year [5][6] - The company signed new contracts worth 1.75 trillion yuan in 2023, a 13.68% increase year-on-year, exceeding its annual target [6][9] - The report highlights significant improvements in cash flow, with a net operating cash flow of 12.07 billion yuan, a substantial increase of 960.5% year-on-year [15] Financial Performance - Revenue and Profitability: - 2023 revenue: 758.68 billion yuan, with a quarterly revenue growth of 17.28% in Q4 [5][10] - Net profit for 2023: 23.81 billion yuan, with a Q4 net profit growth of 120.76% [5][10] - Gross margin improved to 12.59%, up 0.95 percentage points year-on-year [11] - Earnings Per Share (EPS) Forecast: - EPS for 2024, 2025, and 2026 are projected at 1.57 yuan, 1.71 yuan, and 1.84 yuan respectively, with corresponding price-to-earnings (PE) ratios of 5.5, 5.0, and 4.7 [3][19] Business Segments - New Contracts: - Infrastructure business signed contracts worth 15.58 trillion yuan, a 14.0% increase year-on-year [8] - International contracts accounted for 18.24% of new contracts, with a 47.5% year-on-year increase [6][9] - Revenue Breakdown: - Revenue from infrastructure, design, and dredging segments showed varied performance, with infrastructure growing by 5.24% [10][11] Future Outlook - The report anticipates continued growth in domestic infrastructure driven by government initiatives and international expansion under the Belt and Road Initiative [16][17] - CCCC's 2024 targets include a new contract growth rate of no less than 13.5% and revenue growth of at least 8.2% [17]