Haitong Securities·2024-04-02 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company achieved operating revenue of 1,137.99 billion yuan in 2023, representing a year-on-year growth of 3.80%. However, the net profit attributable to shareholders decreased by 2.19% to 26.10 billion yuan, while the net profit after deducting non-recurring gains and losses increased by 1.88% to 24.58 billion yuan [6][8] - In Q4, the company saw significant improvement in revenue, with high growth in new orders from green environmental protection, industrial manufacturing, and emerging industries. The revenue from various segments includes engineering contracting (987.33 billion yuan), planning and design consulting (18.75 billion yuan), industrial manufacturing (23.99 billion yuan), real estate development (83.27 billion yuan), and material logistics (95.87 billion yuan) [6] - The company’s new orders in 2023 increased by 1.51%, with notable growth in engineering contracting (8.82%) and green environmental protection (34.24%), while investment operations saw a decline of 24.05% [6][7] Summary by Sections Financial Performance - The company’s revenue for 2023 was 1,137.99 billion yuan, with a year-on-year growth of 3.80%. The net profit was 26.10 billion yuan, down 2.19%, while the net profit after adjustments was 24.58 billion yuan, up 1.88% [6][8] - The quarterly revenue growth rates for 2023 were 3.43% in Q1, -3.08% in Q2, 2.90% in Q3, and 11.29% in Q4. The net profit growth rates were 5.10%, -1.63%, 9.34%, and -15.61% respectively [6][7] Profitability and Margins - The gross margin for 2023 increased by 0.31 percentage points to 10.40%. The net profit margin decreased by 0.06 percentage points to 2.84% [7][8] - The company maintained a stable dividend policy, distributing 3.50 yuan per 10 shares, totaling 4.75 billion yuan, which is 20.18% of the profit available for distribution, reflecting a year-on-year increase of 4.27 percentage points [7] Earnings Forecast - The expected EPS for 2024 and 2025 is projected to be 2.14 yuan and 2.27 yuan respectively. The reasonable valuation range for 2024 is estimated at 10.70 to 12.84 yuan, based on a price-to-earnings ratio of 5-6 times [7][8]