CCCC(601800) 国投证券·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 10.29 CNY over the next six months [1][5]. Core Insights - The company reported a significant increase in revenue and net profit for 2023, with total revenue reaching 758.68 billion CNY, a year-on-year increase of 5.10%, and a net profit of 23.81 billion CNY, up 23.61% year-on-year [2][5]. - The company has a robust order backlog, with a total of 34,506.59 billion CNY in uncompleted contracts, which is 4.5 times its 2023 revenue, indicating strong future revenue potential [3][5]. - The overseas business has shown rapid growth, with new contracts signed amounting to 3,197.46 billion CNY, a year-on-year increase of 47.5%, contributing to 18.24% of total contracts [3][5]. Financial Performance Summary - In 2023, the company achieved a gross margin of 12.59%, an increase of 0.88 percentage points year-on-year, driven by improvements in both infrastructure construction and design business margins [2][5]. - The company’s operating cash flow significantly improved, with a net inflow of 12.07 billion CNY compared to 1.14 billion CNY in the previous year, attributed to better cash flow management and increased project collections [2][5]. - The projected revenues for 2024-2026 are 819.37 billion CNY, 876.73 billion CNY, and 938.10 billion CNY, with corresponding net profits of 25.30 billion CNY, 27.39 billion CNY, and 29.44 billion CNY, reflecting steady growth [5][6]. Valuation Metrics - The company is expected to have a dynamic PE ratio of 5.5, 5.1, and 4.8 for the years 2024, 2025, and 2026 respectively, indicating an attractive valuation [5][6]. - The projected net profit margin for 2024 is 3.1%, consistent with the previous year, while the return on equity (ROE) is expected to improve to 9.3% by 2026 [6][7].