Revenue in the first three quarters increased by 17.7%, while net profit returned to the home increased by 21.9%. In the first three quarters of 2023, the company realized operating income of 467.3 billion yuan, + 17.7% of the same period last year, and net profit of 8.18 billion yuan, + 21.9% of the same period last year.
In the third quarter alone, the operating income was 132.87 billion yuan, + 23.2% year-on-year, and the return net profit was 970 million yuan, + 15.2% last year. The company's revenue performance continued to grow rapidly in the third quarter.
Q3 new contracts have slowed slightly. In the first three quarters of 2023, the company signed new contracts worth 981.93 billion yuan, + 5.0% compared with the same period last year, of which the newly signed overseas contracts totaled 32.82 billion yuan, + 32.6% compared with the same period last year. In the third quarter, the new contracts signed by the company are 259.3 billion yuan, compared with the same period last year. The new contracts signed by the company in July-September are 789872 / 93.2 billion yuan, respectively, and the monthly contracts are + 1.8%, 18.8% and 9.8% respectively compared with the same period last year.
The settlement progress of the project is slow, the repayment pressure is still high, and the operating cash flow is under pressure periodically. In 2023, the company's "contract net assets" (the difference between contract assets and contract liabilities) reached a relatively high level over the years, reflecting the slow progress of project confirmation and settlement. By the end of Q3 in 2023, the company's contract assets were 141.17 billion yuan, an increase of 1.38 billion yuan compared with the end of Q2, which was lower than the increase of 3.43 billion yuan in contract liabilities, reflecting the marginal improvement in the settlement progress of Q3 project. Q3 company notes and accounts receivable increased by 10.14 billion yuan, much higher than notes payable and accounts payable by 650 million yuan, Q3 operating cash flow net outflow of 7.96 billion yuan, year-on-year outflow of 6.22 billion yuan, reflecting the company's fourth quarter return pressure is still large.
Investment advice: maintain profit forecasts and maintain "buy" ratings. As a leading enterprise in metallurgical construction, the company actively expands its non-steel business and combines the advantages of engineering technology to create differential competitiveness in many fields. Its mineral resources development business has strong profitability and has sufficient potential for further expansion. It is predicted that the company's return net profit from 2023 to 2025 will be 120.7 billion yuan and 16.04 billion yuan, and the corresponding share price PE will be 6.3, 5.5 and 4.8X.
Maintain a "buy" rating.
Risk tips: macroeconomic fluctuation risk; international experience risk; safety and environmental protection risk; risk of less than expected development of new overseas mineral projects; risk of price fluctuation of mineral resources; financial risk and so on.