The company disclosed its three-quarter report for 2023. The first three quarters achieved revenue of 24.165 billion yuan, +10.79% year-on-year, net profit of 1,874 billion yuan, -15.75% of net profit, minus net profit of 1,824 billion yuan, minus net profit of 1,824 billion yuan, -14.44% year-on-year. Among them, the third quarter alone achieved revenue of 8.333 billion yuan, +12.29% year-on-year, net profit of 682 million yuan, net profit of 682 million yuan, +6.89% year-on-year, and net profit of 653 million yuan after deducting non-return net profit of 653 million yuan, +9.72% year-on-year.
The company achieved revenue of 24.165 billion yuan in the first three quarters of 2023, +10.79% year-on-year, mainly due to company integration+smooth overseas business expansion. On a quarterly basis, the company's Q1, Q2, and Q3 achieved operating income of 6.628 billion yuan, 9.203 billion yuan, and 8.333 billion yuan respectively, with changes of +1.49%, +17.11%, and +12.29% over the same period last year.
The company achieved a comprehensive gross profit margin of 26.31% in the first three quarters of 2023, compared with -1.14pct in the same period last year. Among them, the gross margin for the third quarter increased year-on-year and month-on-month, mainly due to falling coal prices plus reduced costs and increased efficiency. On a quarterly basis, the company achieved gross profit margins of 20.23%, 27.37%, and 29.96% respectively in Q1, Q2, and Q3, with changes of -6.11, -2.05, and +3.64pct compared to the same period last year.
The company achieved a net sales profit margin of 9.20% in the first three quarters of 2023, compared with -1.79pct for the same period last year; the cost rate for the first three quarters was 12.55%, +0.54pct compared to the same period last year. The sales expense ratio was 4.59%, y-0.45pct; the management expense ratio was 5.37%, y-o-y +0.12pct; the financial expense ratio was 1.91%, y-o-y +0.45pct; and the R&D expense ratio was 0.69%, +0.42pct yoy.
The company's net operating cash flow for the first three quarters of 2023 was $3,503 million, up from $992 million for the same period last year. From the perspective of revenue and cash to cash ratio, the company's revenue and cash payout ratios for the first three quarters of 2023 were 90.51% and 86.95%, respectively.
Profit forecast and rating: We adjusted our profit forecast. It is estimated that the company's net profit for 2023-2025 will be 26.56, 30.03, and 3.27 billion yuan respectively, and the PE corresponding to the closing price on November 3 will be 11.3, 10.0, and 9.2 times, respectively, maintaining the “increase in holdings” rating.
Risk warning: declining demand in real estate and infrastructure markets; international macroeconomic fluctuations; large fluctuations in raw fuel prices.