Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The target price has been revised down to HK$2.85, corresponding to 3.8x/3.6x/3.7x P/E for 2024/2025/2026 [1][3]. - The company's net profit for 2023 decreased by 9.0% year-on-year to RMB 873 million, which was below expectations [1]. - Total revenue for 2023 was RMB 10.362 billion, a slight decline of 0.7% year-on-year, with design, surveying, and consulting revenue increasing by 9.1% to RMB 4.867 billion, while construction contracting revenue fell by 8.0% to RMB 5.495 billion [1][2]. - The company has maintained a dividend payout ratio of 27% over the past two years, resulting in a current dividend yield of 9.9% based on the current share price [2]. Financial Performance Summary - In 2023, the gross profit margin was 18.2%, an increase of 0.6 percentage points, while the expense ratio rose to 15.8%, up by 1.2 percentage points [1]. - The weighted ROE for 2023 was 12.3%, down by 2.5 percentage points, and the total debt ratio was 69.3%, a decrease of 1.4 percentage points [1]. - The net operating cash flow for 2023 decreased significantly to RMB 329 million from RMB 1.149 billion in 2022 [2]. - New contracts signed in 2023 fell by 30% year-on-year to RMB 6.168 billion, with a notable decline in EPC contracts by 52.0% [2]. Future Earnings Forecast - Earnings per share (EPS) forecasts for 2024 and 2025 have been adjusted downwards by 12.0% and 13.1% to RMB 0.683 and RMB 0.721, respectively, with a new forecast for 2026 set at RMB 0.704 [1][5]. - The projected total revenue for 2024 is RMB 10.33 billion, slightly down from 2023 [5].
高股息率可持续，维持“买入”