CNCEC(SH:601117) EBSCN·2024-05-05 13:07Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown significant improvement in operating cash flow in 2023, driven by strong overseas business performance [6][8] - The company achieved total revenue of 179.2 billion yuan and a net profit attributable to shareholders of 5.4 billion yuan in 2023, reflecting a year-on-year growth of 13.1% and 0.2% respectively [6] - The company has a robust order backlog, with new contracts signed in 2023 amounting to 326.75 billion yuan, a 10% increase year-on-year [7] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 179.2 billion yuan, with a net profit of 5.4 billion yuan, and a non-recurring net profit of 5.2 billion yuan, showing growth rates of 13.1%, 0.2%, and 3.9% respectively [6] - For Q1 2024, the company recorded revenue of 45.2 billion yuan and a net profit of 1.2 billion yuan, representing growth rates of 5.5% and 9.5% year-on-year [6] Order Book and Contracts - The company signed new contracts worth 326.75 billion yuan in 2023, with significant contributions from chemical engineering and emerging industries, which saw increases of 23.5% and 28% respectively [7] - In Q1 2024, new contracts totaled 127.9 billion yuan, with overseas contracts growing significantly by 240.2% [7] Profitability and Cash Flow - The company's gross margin for 2023 was 9.4%, with a net profit margin of 3.4%, showing slight improvements year-on-year [7] - Operating cash flow improved significantly in 2023, with a net cash inflow of 9.13 billion yuan, an increase of 7.63 billion yuan compared to the previous year [7] Future Outlook - The report projects a decrease in net profit forecasts for 2024 and 2025 to 5.89 billion yuan and 6.42 billion yuan, down by 24.9% and 33.2% respectively, but maintains a positive outlook due to a strong order backlog and overseas business growth [8]