Haitong Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company achieved a revenue of 1,263.48 billion yuan in 2023, representing a year-on-year increase of 9.45%, and a net profit attributable to the parent company of 33.48 billion yuan, up 7.07% year-on-year [5] - The company plans to achieve a total operating revenue of approximately 1,300 billion yuan in 2024, which is a 2.89% increase, with new contract amounts expected to reach about 3,300 billion yuan, a 6.43% increase [5] - The gross profit margin improved by 0.20 percentage points to 10.01% in 2023, while the net profit margin decreased by 0.05 percentage points to 2.99% due to increased impairment and investment losses [5] - The company has a robust order growth, with a backlog of contracts amounting to 58,764.1 billion yuan, which is 4.65 times its 2023 revenue, reflecting a year-on-year increase of 19.2% [5] Summary by Sections Financial Performance - In Q4 2023, the company experienced a significant revenue increase of 24.53% and a net profit increase of 14.56% compared to the previous year [5] - The company’s revenue growth rates for each quarter in 2023 were 2.07%, 8.40%, 1.48%, and 24.53% respectively [5] - The company’s operating cash flow net inflow was 38.36 billion yuan, a decrease of 11.91% year-on-year [5] Business Segments - The revenue from infrastructure construction, design consulting, equipment manufacturing, real estate development, and resource utilization was 1,087.59 billion yuan, 18.26 billion yuan, 27.38 billion yuan, 50.91 billion yuan, and 8.37 billion yuan respectively, with growth rates of +10.58%, -1.94%, +5.95%, -4.76%, and +11.49% [5] - The company’s mineral resource segment, particularly China Railway Resources, contributed 14% to the net profit, with a revenue of 24.26 billion yuan and a net profit of 5.19 billion yuan [5] Future Outlook - The company expects EPS for 2024 and 2025 to be 1.53 yuan and 1.71 yuan respectively, with a reasonable valuation range of 7.64 to 9.17 yuan based on a P/E ratio of 5-6 times for 2024 [5] - The company’s copper and molybdenum production capacity ranks among the top in the domestic industry, with copper production of 283,800 tons and molybdenum production of 15,200 tons in 2023 [5]