化工品涨价或提升项目投资建设需求，化学工程新签合同加速提升：化工品涨价有望带动化工行业盈利提升，进而提升项目投资建设需求，公司作为化学工程龙头企业，建筑工程承包中的化学工程新签合同金额加速提升，24 年1-4 月公司化学工程新签合同金额为1132 亿元，同比+19.3%，24 年4 月单月公司新签化学工程合同金额为178 亿元，同比+30.5%。24 年1-4 月公司建筑工程承包中，基础设施合同为265 亿元，同比+32.2%，23 年4 月单月公司新签基础设施合同为39 亿元，同比+15.3%，虽增速有所回落但仍保持一定增长。化学工程及基础设施订单的持续增长带动公司建筑工程承包新签合同持续上扬。Incidents:
The company announced operating data for January to April 2024. From January to April '24, the company signed a new contract amount of 15.8 billion yuan, +21.0% year-on-year, and 22.9 billion yuan in a single month in April '24, +14.1% year-on-year.
Engineering contracting and new industrial materials are making concerted efforts, and new contracts continued to grow: the amount of new contracts signed by the company in January-April '24 was RMB 1441/14/28/ 400 million yuan, +21.2%/-33.5%/+20.9%/-52.7%; in a single month of April '24, the amount of new contracts signed by the company was 219.2/7/1 billion yuan, +15.6% compared to April '24, the amount of new contracts signed in the company was RMB 219.2/7/1, compared to +15.6%. 22.5%/+20.3%/-65.7%
Chemical product prices rise or increase project investment and construction demand, and the increase in new chemical engineering contracts is expected to increase profits in the chemical industry, thereby increasing project investment and construction requirements. As a leading chemical engineering enterprise, the amount of new chemical engineering contracts signed by the company accelerates. From January to April '24, the amount of new chemical engineering contracts signed by the company was 113.2 billion yuan, +19.3%. The amount of new chemical engineering contracts signed by the company in April 24 was 17.8 billion yuan, +30.5% year-on-year. In the company's construction contracts from January to April '24, infrastructure contracts were 26.5 billion yuan, +32.2% year on year. In April '23, the company signed a new infrastructure contract of 3.9 billion yuan, +15.3% year-on-year. Although the growth rate declined somewhat, it maintained a certain increase. The continued increase in chemical engineering and infrastructure orders has led to a continued rise in the signing of new contracts for the company's construction projects.
It has received large orders from Africa, Europe and the Middle East, and new overseas signings have grown rapidly over the same period last year: the company's overseas market expansion has been effective. With leading technical strength, it has repeatedly received large overseas orders through independent overseas expansion projects and following domestic companies. In January-April '24, the company signed a new domestic/ overseas contract of 119.6/31.3 billion yuan, an increase of 1.4%/360.2%. In April, the company received large orders: Zambia's 3,504 billion yuan (annual output of 300,000 tons of synthetic ammonia, 520,000 tons of urea project EPC+OM contract), Hungary's 2,317 billion yuan (general contracting contract for the 400,000 tons/year VCM project of Wanhua Hungary Bosu Chemical)) and Oman 1,385 million yuan (United Solar Polysilicon (FZC) Co., Ltd. produces 100,000 tons of high-purity silicon per year (General contract for construction of material project section A and section D). With the deepening of mutual political trust and energy economy cooperation between China and countries along the “Belt and Road”, such as the Middle East and Central Asia, and the company's overseas expansion efforts, the company's overseas orders are expected to continue to increase.
Profit forecast, valuation and rating: The company's new contracts continue to grow. We maintain the 24-26 net profit forecast of 58.9/64.2/7.12 billion yuan, maintaining a “buy” rating.
Risk warning: the risk of a sharp drop in the price of adiponitrile products, the risk of industrial projects falling short of expectations, the risk of large fluctuations in the price of engineering raw materials, etc.