Q4 Deducted non-net profit increased dramatically in a single quarter. I am optimistic about the company's medium- to long-term development prospects. The company achieved revenue of 406.03 billion yuan, +10.8% year over year, net profit to mother of 7.99 billion yuan, +2.1% year on year, 7.16 billion yuan after year, +25.2% year on year; Q4 single quarter revenue was 120.72 billion yuan, -3.12% year on year; the faster growth rate of Q4 profit was 49.1 billion yuan, 4.28 billion yuan, +35.3% and +48.6% year over year. The faster growth rate of Q4 profit was mainly due to a decrease in financial expenses and investment income Due to a reduction in income tax. Non-recurring profit and loss for the full year of '23 was $8.2 billion, a year-on-year decrease of $1.28 billion. The company's cash dividend ratio in '23 was 14.24%, an increase of 0.2 pct over the previous year, and the dividend rate corresponding to the closing price on March 28 was 1.2%. Considering that investment in energy infrastructure may slow down, we slightly lowered our 25-year profit forecast. We expect to achieve net profit of 87, 95.7, and 10.6 billion dollars (previous value of 8.6 billion in 24 and 25), and the corresponding PE for 24-26 is 10.04/9.15/8.23, maintaining a “buy” rating.
The new energy operation business achieved high growth. Looking at the current development index, the company's revenue from survey design and consulting/engineering construction/industrial manufacturing/investment and operation in 23 years was 191.9, 3434.6, 337.3, and 29.43 billion yuan respectively, +9.9%, +13.7%, +22.61%, and -12.39% compared with the same period last year. By industry, traditional energy/new energy and integrated smart energy/housing/infrastructure/ecological and environmental protection business revenue were -5.5%, +39.4%, -11.5%, +11.9%, and -37.0%, respectively. New energy investment and operation are being deployed at an accelerated pace, and there are plenty of new energy development indicators at hand. By the end of '23, the Company's New Energy Holdings had an installed capacity of 9.5 GW, +90.7% year-on-year, and 0.1 GW of the new energy storage. In '23, the company obtained 20.1 GW of new energy development indicators, +23.8% compared with the same period last year. The new energy business development momentum is strong. The company's new energy and traditional thermal power engineering business has grown rapidly, leading investment, and the implementation of financing construction projects such as area development has led to an increase in non-electrical engineering revenue.
New orders have achieved high growth, and I am optimistic about the company's new energy transformation
The company signed new orders of 128.3.7 billion yuan for the full year of '23, +22.4%, and +20.9%, +50.0%, and +44.7%, respectively. Among them, new orders for traditional energy/new energy and integrated smart energy/urban construction/integrated transportation were +7.5%, +26.1%, +31.1%, and -16.8%, respectively. We are optimistic about the high growth of new energy companies' business.
Excellent overall cash flow and significant improvement in gross margin
The gross margin of the survey design and consulting/engineering construction/industrial manufacturing/investment and operation business in '23 was 39.41%, 7.85%, 16.93%, and 35.26%, respectively, -2.11pct, +0.77pct, +9.93pct, with a comprehensive gross margin of 12.6%, +0.22pct, and Q4 quarterly gross margin of 16.6%, +0.44pct. The investment and operation business led to an increase in overall gross margin. The cost ratio increased slightly from 0.14 pct to 8.45% during the period, and the sales/management/R&D/finance expense ratios were +0.01pct, -0.11pct, +0.35pct, and -0.11pct, respectively, of which R&D expenses were +24% year-on-year. Asset and credit impairment was $3.23 billion, up $710 million year on year, net income from fair value changes increased by 260 million year on year, and net investment income decreased by 680 million year on year. Under the combined impact, net interest rate was 2.77%, down 0.07 pct year on year. The company's net CFO in '23 was 9.49 billion yuan, with a year-on-year increase of 1.55 billion yuan. The improvement in net operating cash flow was mainly due to good repayment conditions. The payment/payout ratio changed by -3.57 pct/-4.13 pct, respectively.
Risk warning: Investment in power infrastructure is slowing down, repayment pressure is high, and policies fall short of expectations.