Cofco Sugar(SH:600737) ZHONGTAI SECURITIES·2024-05-05 02:00Investment Rating - The investment rating for COFCO Sugar Industry is "Buy" (maintained) with a market price of 9.99 CNY [1] Core Views - The company reported a significant increase in revenue and net profit for 2023, with revenue reaching 33.11 billion CNY, up 24.53% year-on-year, and net profit at 2.07 billion CNY, up 177.04% year-on-year [5] - The company achieved record sales in sugar and tomato products, with sugar sales at 1.19 million tons and revenue from sugar at 30.25 billion CNY [5] - The company plans to distribute a cash dividend of approximately 1.86 billion CNY for the 2023 fiscal year, which represents 89.75% of the net profit attributable to shareholders [5] - New product launches targeting the consumer market are expected to enhance brand appeal and sales [5] - The company has demonstrated strong risk management capabilities, particularly in commodity hedging, which has positively impacted performance [5] Financial Summary - For 2023, the company reported total revenue of 33,114 million CNY, with a year-on-year growth rate of 25% [4] - The net profit for 2023 was 2,073 million CNY, reflecting a year-on-year increase of 179% [4] - Earnings per share (EPS) for 2024 is projected at 0.97 CNY, with a net profit forecast of 1,709 million CNY [4] - The company’s return on equity (ROE) is expected to be 13% in 2024, with a price-to-earnings (P/E) ratio of 12.5 [4] - Revenue projections for 2024-2026 are 33.42 billion CNY, 36.03 billion CNY, and 39.91 billion CNY respectively, with net profits of 1.71 billion CNY, 2.34 billion CNY, and 3.48 billion CNY [7]