CMES(SH:601872) Huachuang Securities·2024-03-31 16:00Investment Rating - The report maintains a "Recommend" rating for the company, with a target price of 9.5 CNY, indicating a potential upside of 20% from the current price of 7.96 CNY [2][5]. Core Views - The company reported a 2023 revenue of 25.88 billion CNY, a decrease of 12.9% year-on-year, and a net profit attributable to shareholders of 4.84 billion CNY, down 4.9% year-on-year. The company plans to distribute a cash dividend of 2.38 CNY per 10 shares, raising the dividend payout ratio to 40.07% from 30.36% in 2022 [2][3]. - The oil transportation segment showed significant growth, with revenue of 9.67 billion CNY, up 37.6% year-on-year, and a net profit increase of 249.2%. The average TCE for the TD3C route was 35,500 USD/day, a 111% increase year-on-year [2][3]. - The bulk shipping segment faced challenges, with revenue declining by 39.5% to 7.11 billion CNY, but the company managed to outperform the market through strategic adjustments [2][3]. - The container shipping segment also saw a revenue drop of 22.2% to 5.54 billion CNY, attributed to a significant decline in overall market rates [2][3]. - The roll-on/roll-off shipping segment performed well, with a revenue increase of 5.7% to 1.96 billion CNY, reflecting strong international demand [2][3]. Financial Summary - The company’s total revenue for 2023 was 25.88 billion CNY, with a projected revenue increase to 29.67 billion CNY in 2024, representing a growth rate of 14.6% [3][16]. - The net profit for 2024 is estimated at 7.77 billion CNY, a significant increase of 60.5% compared to 2023 [3][16]. - The earnings per share (EPS) is projected to rise from 0.59 CNY in 2023 to 0.95 CNY in 2024, with a corresponding price-to-earnings (PE) ratio of 8 [3][16].