Guotou Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 8.36 CNY, maintaining the current rating [3]. Core Views - The company reported a total revenue of 1,263.475 billion CNY in 2023, a year-on-year increase of 9.45%, and a net profit attributable to shareholders of 33.483 billion CNY, up 7.07% year-on-year [1][2]. - The revenue growth was driven by a significant increase in railway engineering revenue, which grew by 25.25% year-on-year [1]. - The company has a strong order backlog, with a total of 58,764.10 billion CNY in uncompleted contracts, approximately 4.65 times its 2023 revenue [6]. - The mining business is expected to undergo a value reassessment due to the company's leading reserves in copper, cobalt, and molybdenum, with the mining segment's revenue and net profit margins being significantly higher than the overall company averages [7]. Summary by Sections Revenue and Profitability - In 2023, the company achieved a total revenue of 1,263.475 billion CNY, with quarterly growth rates of +2.07%, +8.40%, +1.48%, and +24.53% respectively [1]. - The comprehensive gross margin improved to 10.01%, an increase of 0.20 percentage points year-on-year, with infrastructure and equipment manufacturing segments showing notable improvements [2]. Cash Flow and Orders - The company reported a net operating cash flow of 38.363 billion CNY in 2023, marking the 11th consecutive year of positive cash flow [6]. - New contracts signed in 2023 amounted to 31,006 billion CNY, a year-on-year increase of 2.20% [6]. Mining Business - The company has established five modern mines, leading in domestic reserves of copper, cobalt, and molybdenum, with the mining segment's revenue reaching 24.258 billion CNY in 2023 [7]. - The mining business is currently undervalued, and with rising resource prices, it is expected to see a reassessment of its value [7]. Financial Forecast - Projected revenues for 2024, 2025, and 2026 are 1,399.930 billion CNY, 1,525.924 billion CNY, and 1,632.738 billion CNY respectively, with corresponding net profits of 37.541 billion CNY, 41.188 billion CNY, and 44.581 billion CNY [7][8].