Core views
The company released an April business report. In January-April, the company achieved cumulative revenue of 35.91 billion yuan, an increase of 8.5% over the previous year; a cumulative total of 49.55 billion yuan of new contracts was signed, an increase of 25.5% over the previous year, and the annual target completion rate reached 31.5%. Among them, the amount of new contracts signed in April was 14.18 billion yuan in a single month, an increase of 36.0% over the previous year, and the performance was impressive. Currently, the macroeconomy is recovering weakly, and traditional infrastructure still has a lot of room for strength. As the largest specialized company and the only listed construction platform under CNNC, the controlling shareholder, we are optimistic that the company will continue to receive a large number of orders for nuclear power projects during the “14th Five-Year Plan” period, driving performance growth.
occurrences
The company issued an April business briefing. From January to April 2023, the company signed a total of 49.55 billion yuan in new contracts, an increase of 25.5% over the same period last year. In January-April, the company achieved cumulative revenue of 35.91 billion yuan, an increase of 8.5% over the same period last year.
Brief review
Performance has been growing steadily, and the amount of new contracts signed in a single month has increased as high as 36%. In January-April 2023, the company achieved cumulative revenue of 35.91 billion yuan, an increase of 8.5% over the previous year; a cumulative total of 49.55 billion yuan of new contracts was signed, an increase of 25.5% over the previous year, and the annual target completion rate reached 31.5%.
Among them, the amount of new contracts signed in April was 14.18 billion yuan in a single month, an increase of 36.0% over the previous year, and the performance was impressive. Considering the company's advantages such as high qualifications, leading technology and rich experience, we are optimistic that the company will continue to receive a large number of orders for nuclear power projects during the “14th Five-Year Plan” period, driving performance growth.
Macroeconomics still needs the strength of the construction industry, and company valuations are expected to continue to rise. Currently, the macroeconomy is recovering weakly, and traditional infrastructure still has a lot of room for strength. As the largest specialized company and the only listed construction platform under the controlling shareholder CNNC Group, the company undertakes various engineering construction tasks in the Group's nuclear industry chain. The synergistic effect is obvious, and it is expected that valuations will continue to increase under a valuation system characteristic of China.
Lower profit forecasts and maintain buying ratings. We forecast the company's 2023-2025 EPS to be 0.70/0.91/1.14 yuan (originally 2023-2024 was 0.85/0.98 yuan). Keep the Buy Rating unchanged.
Risk warning: The development of the nuclear power engineering business falls short of expectations, and PPP investment and operation risks.