CIMC ENRIC(HK:03899)2024-05-23 05:02Investment Rating - The report maintains a rating of "Accumulate" for the company [1] Core Views - The chemical sector is expected to have a short-term drag, while the energy equipment sector is projected to bring long-term growth certainty [1] - Strong orders in the energy sector ensure robust growth for the company in the coming years, with multiple collaborative projects in clean energy expected to enhance revenue [1][2] - The company achieved a revenue of 23.63 billion RMB in 2023, a year-on-year increase of 20.5%, with net profit rising by 7.2% to 1.16 billion RMB [2][4] Financial Performance Summary - Revenue for Q1 2024 decreased by 6.8% to 4.635 billion RMB, with the clean energy segment growing by 21.2% to 3.255 billion RMB, while the chemical environment segment fell by 58.6% to 562 million RMB [2] - New orders in the clean energy segment surged from 3.101 billion RMB to 6.208 billion RMB year-on-year, while total new orders increased from 5.509 billion RMB to 7.478 billion RMB [2] - As of March 31, 2024, the backlog of orders in the clean energy segment rose from 11.712 billion RMB to 20.011 billion RMB [2] Future Projections - Revenue projections for 2024-2026 are 27.84 billion RMB, 31.62 billion RMB, and 37.34 billion RMB, with expected growth rates of 17.8%, 13.6%, and 18.1% respectively [3][4] - The net profit attributable to shareholders is projected to be 1.233 billion RMB, 1.488 billion RMB, and 1.938 billion RMB for the same period, with growth rates of 10.7%, 20.7%, and 30.2% respectively [3][4]