CNCEC(SH:601117) Tianfeng Securities·2024-04-30 14:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [4]. Core Insights - The company achieved a revenue of 179.20 billion yuan in 2023, representing a year-on-year increase of 13.1%. The net profit attributable to shareholders was 5.43 billion yuan, up 0.2% year-on-year, while the net profit excluding non-recurring items was 5.20 billion yuan, an increase of 3.86% [1][3]. - The company’s overseas business is accelerating, with new orders amounting to 100.61 billion yuan, a significant year-on-year increase of 165.48%, accounting for 30.79% of total new contracts [1][2]. - The company’s cash flow from operations (CFO) saw a substantial increase to 9.13 billion yuan in 2023, reflecting improved operational quality [3][9]. Financial Performance Summary - In 2023, the company’s revenue by segment included chemical engineering (142.37 billion yuan, +20.35%), infrastructure (21.99 billion yuan, -1.84%), environmental governance (2.84 billion yuan, -18.90%), industrial and new materials (7.71 billion yuan, +4.75%), and modern services (2.99 billion yuan, -47.34%) [2]. - The gross margin for 2023 was 9.4%, a slight increase of 0.07 percentage points year-on-year, while the net profit margin was 3.35%, down 0.32 percentage points due to increased asset and credit impairment losses [3][10]. - The company’s total assets reached 219.12 billion yuan in 2023, with total liabilities of 155.04 billion yuan, resulting in a debt-to-asset ratio of 70.06% [8][9]. Future Projections - The company is expected to see net profits of 6.00 billion yuan in 2024, 6.83 billion yuan in 2025, and 7.64 billion yuan in 2026, reflecting year-on-year growth rates of 11%, 13%, and 12% respectively [3][10]. - The report anticipates that 2024 will be a peak year for revenue conversion from overseas orders, driven by ongoing demand from the Belt and Road Initiative [2][3].