CMES(SH:601872)2024-04-23 13:30Investment Rating - The report maintains an "Accumulate" rating for the company [1][4]. Core Views - The company's oil transportation performance has significantly improved, while the bulk and container shipping sectors are expected to recover in 2024 [4]. - The report highlights a substantial increase in net profit from oil transportation, which reached 3.083 billion RMB, a year-on-year increase of 249.18% [4]. - Despite a decline in overall revenue and net profit due to weak dry bulk and container shipping markets, the outlook for 2024 is optimistic, with expectations of improved oil transportation demand and potential recovery in bulk and container shipping as the global economy stabilizes [4]. Financial Summary - The company reported a total revenue of 25.881 billion RMB in 2023, a decrease of 12.88% year-on-year, with a net profit of 4.837 billion RMB, down 4.92% [4][5]. - The oil transportation segment generated a net profit of 3.083 billion RMB, while the dry bulk and container shipping segments saw net profits of 899 million RMB and 873 million RMB, reflecting declines of 58.44% and 58.21% respectively [4]. - The report projects net profits for 2024-2026 to be 6.952 billion RMB, 7.740 billion RMB, and 8.434 billion RMB, representing year-on-year growth rates of 43.7%, 11.3%, and 9.0% respectively [5][8]. Market Performance - The company's stock is currently priced at 8.79 RMB, with a market capitalization of approximately 71.584 billion RMB [1][3]. - The average daily trading volume over the past three months is reported at 315.77 million RMB [3]. Future Outlook - The report anticipates a continued improvement in the oil transportation supply-demand balance in 2024, with expectations for rising freight rates due to limited new ship orders and increasing export volumes from the U.S. and Russia [4]. - The dry bulk and container shipping sectors are expected to benefit from a recovery in global economic conditions, which may drive demand upward [4].