INDUSTRIAL SECURITIES·2024-05-03 09:02Investment Rating - The report maintains an "Accumulate" rating for China Energy Engineering Corporation (601868) [2][4] Core Views - China Energy Engineering Corporation reported a robust growth in new contracts and net profit for Q1 2024, with a year-on-year increase of 32% in net profit and a 10.04% rise in revenue [3][5] - The company is experiencing strong growth in traditional energy, urban construction, and industrial manufacturing sectors, contributing to a 23.53% increase in new contract value [3][6] - The company’s gross profit margin improved to 10.71%, reflecting better project selection and an optimized business structure [7][8] Financial Performance - In Q1 2024, the company achieved a revenue of 974.04 billion yuan, a 10.04% increase year-on-year, and a net profit of 14.81 billion yuan, up 31.71% [5][6] - The new contract value reached 3677.56 billion yuan, with significant contributions from engineering construction and industrial manufacturing [3][6] - The gross profit margin for Q1 2024 was 10.71%, an increase of 0.65 percentage points year-on-year, while the net profit margin rose to 2.41%, up 0.32 percentage points [7][8] Business Segments - The engineering construction segment saw new contracts of 3151.68 billion yuan, a 10.38% increase, while industrial manufacturing contracts surged by 582.48% [3][6] - The company is focusing on diversifying its engineering construction business, with strong performance in traditional and renewable energy sectors [6][12] - The company is also advancing in new energy sectors, including storage and hydrogen energy, with significant project developments underway [12][13] Future Outlook - The report forecasts net profits of 88.24 billion yuan, 96.34 billion yuan, and 104.10 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 10.4, 9.5, and 8.8 [4][13] - The company is expected to continue benefiting from its integrated investment and operation model in the new energy sector, which is anticipated to enhance profitability [12][13]