SDRB(SZ:000498) Tianfeng Securities·2024-04-14 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.76 CNY, indicating an expected upside from the current price of 5.54 CNY [19][32]. Core Insights - The company achieved a revenue of 73.02 billion CNY in 2023, representing a year-on-year growth of 3.3%. However, the net profit attributable to the parent company decreased by 15.2% to 2.29 billion CNY due to increased expense ratios and asset impairment losses [24][32]. - The company has successfully secured new orders, with a total bid amount of 118.69 billion CNY in 2023, reflecting a year-on-year increase of 35%. This growth is supported by a strong presence in the Shandong market and expanding overseas operations [1][32]. - The gross profit margin improved to 12.93% in 2023, up 0.74 percentage points year-on-year, driven by refined management practices [1][17]. Financial Summary - The company reported a gross profit margin of 12.93% in 2023, with a notable increase in the fourth quarter to 14.31% [1]. - The financial data indicates a significant rise in financial expenses, which increased by 101.26% year-on-year, primarily due to the growth in interest-bearing liabilities [9]. - The cash flow from operations showed a negative net amount of -3.96 billion CNY in 2023, indicating a substantial cash outflow compared to the previous year [37]. Market Position - The company continues to consolidate its market position in Shandong while actively exploring opportunities in other provinces and international markets, particularly in Africa and Eastern Europe [1][32]. - The report highlights the company's focus on enhancing its overseas engineering contracting capabilities, with successful bids in multiple countries including Tanzania, the Philippines, Myanmar, and Uganda [1].