EBSCN·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Railway Construction Corporation (601186.SH/1186.HK) [1] Core Views - The company's performance was impacted by impairment losses, but the dividend payout ratio has significantly increased [6] - In 2023, the company reported revenues of CNY 1,138 billion, a year-on-year increase of 3.8%, while net profit attributable to shareholders decreased by 2.2% to CNY 261 billion [5][6] - The company plans to distribute a cash dividend of CNY 0.35 per share, resulting in a dividend yield of approximately 4.6% [5] Summary by Sections Financial Performance - In Q4 2023, the company recorded revenues of CNY 331.5 billion, a year-on-year increase of 11.3%, but net profit attributable to shareholders fell by 15.6% [5][6] - The total impairment losses for the year reached CNY 99.4 billion, an increase of 25.2% compared to the previous year [6] - The company signed new contracts worth CNY 3.29 trillion in 2023, a 1.5% increase year-on-year, with domestic contracts growing by 3.5% and international contracts declining by 17.4% [6] Business Segments - The engineering contracting segment achieved revenue of CNY 987.3 billion, a 2.3% increase, with a gross margin of 8.9% [6] - The real estate segment saw sales of approximately CNY 121.4 billion, with revenue from property development reaching CNY 83.3 billion, a 33.8% increase [6] Dividend Policy - The company has set a dividend payout ratio of 20.18% for 2023, an increase of 4.3 percentage points from 2022, and has established a three-year shareholder return plan [6] Profit Forecast and Valuation - The profit forecasts for 2024 and 2025 have been revised down to CNY 28.2 billion and CNY 30.5 billion, reflecting a decrease of 14.8% and 18.1% respectively [6] - The report remains optimistic about the company's core business development and overseas expansion, maintaining a "Buy" rating for both A-shares and H-shares [6]