Investment Rating - The report maintains a "Buy" rating for China Oriental Group (0581) [4] Core Views - The company's performance in Q4 2023 fell short of expectations due to weakened demand and significant cost pressures, leading to a decline in profitability for steel products. Additionally, the real estate business has been adversely affected by the ongoing downturn in the property market [2] - For 2023, the company reported revenue of 46.26 billion RMB, a year-on-year decrease of 4.85%, and a net profit (excluding minority interests) of -160 million RMB, a year-on-year decline of 119.78%. The net profit forecasts for 2024 and 2025 have been revised down to 312 million RMB and 415 million RMB, respectively, with a new forecast for 2026 set at 529 million RMB [2][3] - The steel production for 2023 was 7.73 million tons, an increase of 8.87% year-on-year, but the gross profit per ton of steel dropped to 50 RMB, a decrease of 70.06% year-on-year, primarily due to falling steel prices [2] - The real estate segment reported a loss, with a gross profit of -99 million RMB in 2023, a year-on-year decline of 198%, and a total operating loss of 149 million RMB [2] - The company maintains a relatively high dividend yield, with dividends per share of 0.10 and 0.05 HKD for 2022 and 2023, respectively, resulting in dividend yields of 8.70% and 4.81% [2] Financial Summary - For 2023, the company achieved a revenue of 46,260 million RMB, with a gross profit margin decline of 4.85% [3] - The net profit for 2023 was -160 million RMB, reflecting a significant year-on-year decrease of 119.78% [3] - The projected net profits for 2024, 2025, and 2026 are 312 million RMB, 415 million RMB, and 529 million RMB, respectively [3]
中国东方集团2023年报业绩点评：短期业绩下降，股息率仍保持行业领先