CPEC(SH:600339) Haitong Securities·2024-04-14 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][7] Core Views - The report highlights steady performance growth, with significant projects progressing smoothly [5][6] - The company achieved operating revenue of 80.343 billion yuan in 2023, a year-on-year decrease of 3.88%, while total profit increased by 12.08% to 1.424 billion yuan [5][9] - The net profit for 2023 was 743 million yuan, reflecting a year-on-year growth of 2.97% [5][9] Market Performance - The company has seen a significant increase in its high-end market share, with new contracts signed amounting to 22.559 billion yuan, representing 20.63% of the overall market share, a year-on-year increase of 26.64% [5][6] - The overseas market has also shown strong growth, with new contracts totaling 36.5 billion yuan, accounting for 33.38% of the total market share, a year-on-year increase of 48.35% [5][6] Financial Performance - The company executed a total of 11,512 projects in 2023, showcasing its strong project delivery capabilities [6] - Research and development investment reached 2.42 billion yuan in 2024, with a research intensity of 3.01% [6] - The projected net profit for 2024 to 2026 is expected to be 824 million yuan, 988 million yuan, and 1.04 billion yuan respectively, with corresponding EPS of 0.15 yuan, 0.18 yuan, and 0.19 yuan [7][9] Valuation - The reasonable value range for the company is estimated to be between 4.82 yuan and 5.30 yuan based on a PB ratio of 1.0-1.1 times the 2024 BPS of 4.82 yuan [7]