Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company reported a revenue of 210.2 billion RMB in 2023, a decrease of 9.09% year-on-year, with a net profit of 3.863 billion RMB, down 51.48% year-on-year. The adjusted net profit was 3.863 billion RMB, reflecting a 5.84% increase year-on-year, which met expectations [3]. - Due to pressure on profitability in the materials segment, the net profit forecasts for 2024 and 2025 have been revised down to 3.987 billion RMB and 4.652 billion RMB, respectively, with an increase in the 2026 profit forecast to 5.042 billion RMB. The target price has been adjusted to 3.81 HKD based on a comparable company PE of 8.08x for 2024 [3]. - The cement and clinker sales volume reached 309 million tons in 2023, a decline of 2.5% year-on-year, which is greater than the industry average decline of 0.7%. The average price for cement and clinker was 271 RMB per ton, down 18.4% year-on-year [3]. - The new materials segment saw revenue of 47.6 billion RMB in 2023, with a net profit of 3.429 billion RMB, down 34.3% year-on-year. Despite volume increases in various product lines, price pressures were evident [3]. - The engineering services segment achieved revenue of 41.5 billion RMB, with a net profit of 1.451 billion RMB, reflecting a year-on-year increase of 3.3%. The overseas orders increased by 55% in 2023, maintaining the company's leading global market share in cement technology equipment [3]. - The company's operating cash flow was 29 billion RMB in 2023, an increase of 8% year-on-year, and the financial expenses decreased to 5.1 billion RMB, down 13% year-on-year, indicating an improvement in the balance sheet quality [3]. Financial Summary - Revenue for 2023 was 210.216 billion RMB, with a gross profit of 37.466 billion RMB and a net profit of 3.863 billion RMB [2]. - The PE ratio for 2023 was 5.15, with projections for 2024 and 2025 at 4.99 and 4.28, respectively [2].
2023年报点评：工程服务出海订单高增，材料盈利同比承压