INDUSTRIAL SECURITIES·2024-03-30 16:00Investment Rating - The report maintains an "Accumulate" rating for China Energy Engineering Corporation (601868) [3][4][14] Core Views - China Energy Engineering Corporation reported a revenue of 406.032 billion yuan for 2023, representing a year-on-year growth of 10.82%. The net profit attributable to shareholders was 7.986 billion yuan, up 2.07% year-on-year, while the net profit after deducting non-recurring items increased by 25.19% to 7.163 billion yuan [4][5][14] - The company achieved a total new contract value of 1.283731 trillion yuan in 2023, marking a 22.37% increase year-on-year, driven by strong growth in the domestic and international renewable energy sectors [6][14] Financial Performance Summary - Revenue and Profit: In 2023, the company achieved a total revenue of 4060.32 billion yuan, with a breakdown of quarterly revenues as follows: Q1: 885.16 billion yuan, Q2: 1036.04 billion yuan, Q3: 931.93 billion yuan, Q4: 1207.19 billion yuan [4][8] - Profit Margins: The comprehensive gross margin for 2023 was 12.64%, an increase of 0.22 percentage points year-on-year, while the net profit margin was 2.77%, a slight decrease of 0.07 percentage points [9][10] - Cash Flow: The operating cash flow per share for 2023 was 0.23 yuan, an increase of 0.04 yuan year-on-year, indicating improved cash flow management [13] Business Segment Performance - Revenue by Segment: Revenue from various business segments in 2023 included: Surveying and Design: 19.187 billion yuan (+9.86%), Engineering Construction: 343.464 billion yuan (+13.71%), Industrial Manufacturing: 33.732 billion yuan (+22.61%), Investment Operations: 29.432 billion yuan (-12.39%), and Other Businesses: 9.616 billion yuan (+16.56%) [4][8] - New Energy Focus: The engineering construction segment, particularly in renewable and integrated smart energy, saw a revenue increase of 39.36% to 1157.09 billion yuan, highlighting its role as a key growth driver [4][8] Future Outlook - Earnings Forecast: The report projects net profits for 2024, 2025, and 2026 to be 8.824 billion yuan, 9.634 billion yuan, and 10.410 billion yuan respectively, with corresponding price-to-earnings ratios of 10.0, 9.2, and 8.5 [14][15] - Strategic Initiatives: The company is focusing on integrating investment, construction, and operation in the renewable energy sector, with significant projects in storage and hydrogen energy expected to enhance profitability in the long term [14]