Investment Rating - The investment rating for COFCO Technology (301058.SZ) is "Buy" with a current price of 10.14 CNY and a target value of 13.67 CNY [2][4]. Core Insights - The company demonstrated excellent operating cash flow with a net inflow of 433 million CNY in 2023, up from 132 million CNY in 2022. The gross margin, net margin, and ROE for 2023 were 24.74%, 9.29%, and 11.36%, respectively, reflecting significant year-on-year improvements of 4.02, 2.68, and 2.05 percentage points [1][3]. - The mechanical and electrical engineering business maintained stable order revenue, while the grain and oil processing business saw a notable increase in gross margin. New contracts signed in the mechanical engineering sector amounted to 2.178 billion CNY, a year-on-year increase of 1.09%, with revenue of 1.074 billion CNY, down 1.67%, and a gross margin increase of 2.47 percentage points [1][3]. - The company is expected to promote the conversion of design projects in mechanical engineering in 2024, which, combined with an acceleration in business operations, is projected to improve profitability. Forecasted net profits for 2024, 2025, and 2026 are 280 million CNY, 362 million CNY, and 441 million CNY, respectively [4][3]. Financial Summary - In 2023, the company achieved revenue of 2.414 billion CNY, a decrease of 10.51% year-on-year, while the net profit attributable to shareholders was 218 million CNY, an increase of 29.03%. In Q4 2023, revenue was 997 million CNY, down 7.72%, with a net profit of 111 million CNY, up 52.80% [3][4]. - The company signed new contracts worth 3.965 billion CNY in 2023, reflecting a year-on-year increase of 0.53% [3].
经营性现金流表现优异，盈利水平提升