Guotou Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 10.6 CNY [3][6]. Core Views - The company reported a revenue of 1,137.993 billion CNY for 2023, a year-on-year increase of 3.80%, while the net profit attributable to shareholders was 26.097 billion CNY, a decrease of 2.19% year-on-year [1][2]. - The fourth quarter saw a significant revenue growth of 11.29%, marking the highest growth rate since 2020, driven by accelerated project payments [1][6]. - The company maintained a robust growth in its engineering contracting business, with a revenue increase of 2.34% year-on-year, while the real estate development segment experienced a remarkable growth of 33.76% [1][2]. Financial Performance Summary - The gross profit margin improved to 10.40%, up by 0.31 percentage points year-on-year, with the engineering contracting and planning design consulting segments showing respective margins of 8.87% and 43.27% [2][6]. - The company’s total liabilities to assets ratio was 74.92% at the end of 2023, a decrease of 0.61 percentage points from the previous quarter [6]. - The company declared a cash dividend of 3.50 CNY per 10 shares, increasing the cash dividend ratio to 20.18% from 15.91% in the previous year [6]. Revenue and Profit Forecast - The company is expected to achieve revenues of 1,194.893 billion CNY, 1,278.535 billion CNY, and 1,368.033 billion CNY for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 5.0%, 7.0%, and 7.0% [6][8]. - The forecasted net profits for the same years are 27.527 billion CNY, 29.733 billion CNY, and 32.012 billion CNY, reflecting growth rates of 5.5%, 8.0%, and 7.0% respectively [6][8].