CHINA RAILWAY(601390) 民生证券·2024-03-31 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][5] Core Views - The company achieved a revenue of 1,263.475 billion yuan in 2023, representing a year-on-year increase of 9.45%, with a net profit attributable to shareholders of 334.83 billion yuan, up 7.06% year-on-year [1] - The company is expected to see net profits of 375.57 billion yuan, 409.11 billion yuan, and 431.26 billion yuan for the years 2024 to 2026, with corresponding PE ratios of 5, 4, and 4 times [1][2] - The report highlights the significant revaluation potential of the company's mineral resources segment, which generated revenue of 8.37 billion yuan in 2023, with a gross margin of 59.70% [1] Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 1,263.475 billion yuan, with a gross margin of 10.01% and a net margin of 2.99% [1] - The fourth quarter of 2023 saw revenue of 378.954 billion yuan, a year-on-year increase of 24.53% [1] - The company’s new signed orders increased by 2% year-on-year, with domestic and international orders at 29,008 billion yuan and 1,998 billion yuan, respectively [1] Business Segments - Revenue from infrastructure, design, equipment, and real estate development in 2023 was 1,087.59 billion yuan, 18.26 billion yuan, 27.34 billion yuan, and 50.91 billion yuan, respectively [1] - The gross margins for these segments were 8.86%, 28.36%, 21.26%, and 14.51%, respectively [1] Mineral Resources - The mineral resources segment achieved a revenue of 8.37 billion yuan in 2023, with a gross margin of 59.70% [1] - The company’s production figures included 283,800 tons of copper, 4,600 tons of cobalt, 15,200 tons of molybdenum, 8,500 tons of lead, 26,600 tons of zinc, and 44 tons of silver [1] Dividend and Cash Flow - The company declared a dividend of 5.198 billion yuan for 2023, resulting in a dividend payout ratio of 15.5% [1] - Operating cash flow for 2023 was 38.4 billion yuan, compared to 43.6 billion yuan in 2022 [1] Future Outlook - The report emphasizes the company's strong performance in new signed orders and the expansion of its international business [1] - The anticipated growth in net profit and the favorable PE ratios suggest a positive outlook for the company [2][5]