The scale of revenue has maintained growth, the construction of new energy has a bright future, and the "buy" rating of China Energy Construction has been maintained in the mid-term report of 2023. The revenue scale in the first half of the year has maintained growth, the return net profit has declined slightly, and the construction of new energy has made rapid progress. I am optimistic that the market share will continue to rise in the future. We maintain the profit forecast and expect the company's net profit from 2023 to 2025 to be 95.2, 124.3 and 15.26 billion yuan, corresponding to EPS 0.23,0.30,0.37 yuan, and the current share price corresponding to PE 10.1,7.7,6.3 times, maintaining the "buy" rating.
The scale of revenue has increased rapidly, and the net profit of homecoming has declined slightly.
In the first half of the year, the company achieved operating income of 192.12 billion yuan, an increase of 21.4% over the same period last year, net profit of 2.658 billion yuan, down 5.3% from the same period last year, and basic earnings per share of 0.06 yuan, down 4.8% from the same period last year. Gross profit margin and net profit margin were 10.9% and 2.4% respectively (12.4% and 2.8% in 2022). The decline in the company's performance in the first half of the year was mainly due to a drop in net investment income of 1.05 billion yuan and an increase in profit and loss for minority shareholders. The gross profit margin of engineering construction, industrial manufacturing and investment operation is 6.86% (+ 0.09pct), 18.85% (+ 1.26pct) and 29.06% (+ 3.27pct) respectively.
Newly signed orders are growing rapidly, with balanced development at home and abroad.
The newly signed contract value of the company in the first half of the year was 645.93 billion yuan, an increase of 21.2% over the same period last year, of which the newly signed contract value in China was 486.35 billion yuan, an increase of 24.9% over the same period last year. The newly signed contracts in traditional energy, comprehensive transportation and housing construction increased by 91.2%, 77.2% and 15.3%, respectively. The value of newly signed overseas contracts reached 159.58 billion yuan, an increase of 11.3% over the same period last year, the market along the "Belt and Road Initiative" route increased by 39.1%, overseas new energy and comprehensive smart energy business increased by 100.7%, and domestic and overseas newly signed orders went hand in hand.
Can speed up the construction of projects to take the lead, the new energy business has a bright future
In the first half of the year, the company's newly signed new energy business contracts reached 216.4 billion yuan, up 5.2% from the same period last year; operating revenue was 57.58 billion yuan, up 56.8% from the same period last year; and gross profit was 3.684 billion yuan, up 54.5% from the same period last year. The share of revenue and gross profit of the new energy business in the company's overall business increased by 6.23 percentage points and 2.79 percentage points respectively. In addition, the company has obtained the scenic new energy development target of 10.28 million kilowatts, and the cumulative development target has reached 40.51 million kilowatts. At the same time, the company has accelerated the development of new industries, signed 13 energy storage projects such as compressed air, electrochemistry and pumped storage, and obtained a development index of 4.4 million kilowatts, speeding up the first echelon of the new energy storage industry and achieving breakthroughs in the hydrogen energy and geothermal business sector.
Risk hint: the growth rate of new energy investment is not as fast as expected and the diversified business operation is not as expected.