Haitong Securities·2024-04-01 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company achieved a revenue of 758.68 billion yuan in 2023, representing a year-on-year growth of 5.1%. The net profit attributable to the parent company was 23.81 billion yuan, up 23.6% year-on-year, with a non-recurring net profit of 21.66 billion yuan, increasing by 58.18% year-on-year [4][5]. - The company expects a new contract signing growth of no less than 13.5% and a revenue growth of no less than 8.2% for 2024 [5]. - The company is a leading global provider of large-scale infrastructure services, focusing on overseas expansion, with significant growth in new contracts signed abroad [5]. Summary by Sections Financial Performance - In Q4 2023, the company saw a significant improvement in revenue, profit, and cash flow. The revenue from infrastructure construction, dredging, and other businesses showed stable growth [4]. - The revenue breakdown by business segments includes 666.87 billion yuan from infrastructure construction, 47.26 billion yuan from design, 53.44 billion yuan from dredging, and 19.27 billion yuan from other businesses, with respective year-on-year growth rates of 5.24%, -6.00%, 4.92%, and 6.10% [4]. - The revenue from China (excluding Hong Kong and Macau) was 642.46 billion yuan, up 3.09%, while revenue from other countries and regions was 116.21 billion yuan, up 17.78% [4]. Profitability Metrics - The gross margin for 2023 increased by 0.89 percentage points to 12.54%, with the net profit margin rising by 0.54 percentage points to 3.98% [5]. - The company reported a significant increase in operating cash flow, with a net inflow of 12.07 billion yuan, an increase of 11.63 billion yuan compared to the previous year [5]. Future Outlook - The company forecasts an EPS of 1.62 yuan for 2024 and 1.75 yuan for 2025, with a reasonable valuation range of 12.96 to 14.58 yuan based on a PE ratio of 8-9 times for 2024 [5]. - The company aims to maintain its competitive edge in the design business through restructuring and listing [5].