CCCC(601800) 广发证券·2024-07-18 01:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 10.27 CNY for A-shares and 5.48 HKD for H-shares [2][37]. Core Insights - The company has shown steady revenue growth, with a 2023 revenue of 758.7 billion CNY, up 5.1% year-on-year, and a net profit of 238 billion CNY, up 23.6% year-on-year [7][8]. - New contract signings have increased significantly, with a total of 5.073 trillion CNY in new contracts signed in Q1 2024, representing a 10.8% year-on-year growth [8][20]. - The company is focusing on optimizing its investment layout and enhancing its international presence, aiming to become a benchmark for state-owned enterprise reform [1][20]. Summary by Sections Revenue and Performance - The company achieved a net profit of 61.4 billion CNY in Q1 2024, a 10.0% increase year-on-year, with new contracts signed amounting to 507.3 billion CNY, up 10.8% year-on-year [7][8]. - The company’s revenue from overseas projects reached 116.2 billion CNY in 2023, a 17.8% increase year-on-year, accounting for 15.3% of total revenue [20]. Domestic Operations - The company has partnered with Chongqing Water Investment to enhance its capabilities in the water conservancy sector, focusing on investment, design, construction, and operation [10][11]. - The average operating cycle for major asset operation projects has decreased from 21 years to 10 years from 2020 to 2023, improving cash flow from a net outflow of 55.2 billion CNY to a net inflow of 33.5 billion CNY [11][12]. International Operations - The company has signed overseas contracts worth 912 billion CNY in Q1 2024, marking a 9.4% year-on-year increase, with a focus on regions such as the Middle East, Africa, and Southeast Asia [16][20]. - A strategic cooperation agreement was signed with China Water Resources and Hydropower Group for the Chile Rukawi Hydropower Station project, marking the company's first investment in hydropower in Chile [20][24]. State-Owned Enterprise Reform - The company is implementing a stock incentive plan with performance targets set for 2023-2025, aiming for a compound annual growth rate (CAGR) of net profit of at least 8% [22][23]. - The company has successfully spun off its design assets for listing, with the design segment expected to achieve a net profit of 6.2-6.4 billion CNY in H1 2024, a significant increase of 161%-169% year-on-year [24][25]. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 257 billion CNY, 277 billion CNY, and 299 billion CNY for 2024, 2025, and 2026, respectively [37]. - The report suggests a valuation of 6.5 times PE for 2024, leading to a target price of 10.27 CNY for A-shares and 5.48 HKD for H-shares, maintaining the "Buy" rating [37].