CSCEC(601668) 光大证券·2024-04-24 07:02Investment Rating - The report maintains a "Buy" rating for China State Construction Engineering Corporation (601668.SH) with a current price of 5.22 CNY [1]. Core Views - The company demonstrated steady growth in operating performance and significant improvement in cash flow, with a year-on-year increase in revenue, net profit, and net profit excluding non-recurring items of 10.2%, 6.5%, and 7.3% respectively for 2023 [5][6]. - The company plans to distribute a cash dividend of 0.27 CNY per share, resulting in a dividend payout ratio of 20.82% and a dividend yield of approximately 5.6% [5]. Summary by Sections Financial Performance - In 2023, the company achieved revenue of 226.55 billion CNY, net profit of 54.26 billion CNY, and net profit excluding non-recurring items of 48.54 billion CNY, reflecting year-on-year growth of 10.2%, 6.5%, and 7.3% respectively [5]. - For Q4 2023, the company reported revenue of 59.43 billion CNY, net profit of 10.61 billion CNY, and net profit excluding non-recurring items of 7.48 billion CNY, with year-on-year increases of 14.5%, 43.1%, and 35.2% respectively [5]. Cash Flow and Cost Management - The company improved its cash flow management, with operating cash flow reaching 11.03 billion CNY in 2023, an increase of 7.2 billion CNY compared to the previous year [6]. - The sales gross margin and net margin for 2023 were 9.8% and 3.2%, showing a slight decrease of 0.6 and 0.1 percentage points respectively [6]. Contract and Revenue Growth - The company signed new contracts worth 432.41 billion CNY in 2023, a year-on-year increase of 10.8%, with significant growth in infrastructure and design services [7]. - The revenue from various segments, including construction and design, showed steady growth, with real estate sales increasing by 12.4% year-on-year [7]. Investment and Land Acquisition - In 2023, the company completed investments totaling 400.3 billion CNY, a decrease of 1.1% year-on-year, while investment returns increased by 10.6% to 428.3 billion CNY [6]. - The company focused on key regions, with 92.3% of its total investment in areas such as the Beijing-Tianjin-Hebei region and the Yangtze River Economic Belt [6]. Profit Forecast and Valuation - The report slightly lowers the profit forecast for 2024 and 2025 to 57.73 billion CNY and 60.98 billion CNY, respectively, while introducing a new forecast for 2026 at 63.01 billion CNY [7][8]. - The company maintains a price-to-earnings ratio of 4 and a price-to-book ratio of 0.5 for the forecasted years [10].