CH ENERGY ENG(601868) 长江证券·2024-11-11 08:04Investment Rating - The report maintains a Buy rating for China Energy Engineering Corporation (601868 SH) [3] Core Views - Revenue growth remains steady with accelerated Q3 growth: The company achieved total revenue of 2951 39 billion yuan in the first three quarters, a year-on-year increase of 3 44%, with Q3 revenue reaching 1008 77 billion yuan, up 8 24% year-on-year [3] - Profit quality slightly declined with a marginal increase in expense ratio: The comprehensive gross margin for the first three quarters was 11 54%, up 0 59pct year-on-year, while the Q3 gross margin was 10 28%, down 0 71pct year-on-year The expense ratio for the first three quarters was 8 31%, up 0 60pct year-on-year [4] - Cash flow outflow narrowed year-on-year with improved cash collection ratio: The net cash outflow from operating activities in the first three quarters was 12 518 billion yuan, a reduction of 2 229 billion yuan year-on-year, with a cash collection ratio of 92 99%, up 6 24pct year-on-year [5] - Strong performance in the new energy sector: The company achieved a 19 4% year-on-year increase in new contracts and a 10 1% increase in revenue for new energy and integrated smart energy businesses in the first three quarters The company also secured 12 88 GW of new wind and solar energy development indicators, with a total installed capacity exceeding 11 64 GW [6] Financial Performance - The company achieved a net profit attributable to shareholders of 3 604 billion yuan in the first three quarters, a year-on-year increase of 17 28%, while the net profit after deducting non-recurring gains and losses was 2 846 billion yuan, down 1 35% year-on-year [3] - In Q3, the net profit attributable to shareholders was 822 million yuan, a significant year-on-year increase of 97 81%, while the net profit after deducting non-recurring gains and losses was 518 million yuan, down 3 43% year-on-year [3] - The net profit margin for the first three quarters was 1 22%, up 0 14pct year-on-year, while the net profit margin after deducting non-recurring gains and losses was 0 96%, down 0 05pct year-on-year [4] New Energy Sector Highlights - The company has made significant technological breakthroughs in achieving China's "dual carbon" goals, including the successful grid connection of the 300 MW compressed air energy storage demonstration project in Yingcheng, Hubei, which set three world records in single-unit power, energy storage scale, and conversion efficiency [6] - The company is actively promoting the application of green and low-carbon new technology demonstration projects, such as the Jilin Songyuan green hydrogen-ammonia-alcohol integrated demonstration project and the Liaoxi sustainable fuel production and supply base [6] - The company has built the first domestic and international 100-ton/year CO2 capture and reduction to syngas integrated demonstration device and system, which is of great significance for promoting China's "dual carbon" goals and CO2 resource utilization engineering demonstrations [6] Market Performance - The current stock price is 2 50 yuan, with a total share capital of 4 169116 billion shares and a net asset per share of 2 47 yuan [7] - The stock's performance over the past 12 months shows a range between a high of 2 65 yuan and a low of 2 01 yuan [7]