CIMC Enric (3899) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 20.5% YoY to RMB23.626bn; net profit increased 7.2% to RMB1.164bn and attributable profit rose 5.6% to RMB1.114bn, all at historic highs.

• Clean Energy led growth, with revenue up 40.8%; full-year new orders rose 31.5% to RMB26.64bn and year-end backlog increased 29.8% to RMB22.85bn.

• Dividend payout ratio increased to 50%; dividend per share was HKD0.30 (RMB0.27), and net operating cash flow was RMB1.78bn.

Financial highlights

• Revenue reached RMB23.626bn, up 20.5% YoY; 2020–2023 revenue CAGR was 24.3%, with gross profit margin described as stable.

• Net profit was RMB1.164bn, up 7.2% YoY; net profit attributable to shareholders was RMB1.114bn, up 5.6%.

• Revenue mix: Clean Energy 63.1% (2022: 54.0%), Chemical and Environmental 18.7% (26.7%), Liquid Food 18.2% (18.5%); overseas revenue was 48.5% (54.1%).

Outlook and guidance

• Confirmed coke-oven-gas project capacity totals 50,000 tonnes of hydrogen and 400,000 tonnes of LNG; 2027 targets are 200,000 tonnes and 1m tonnes, respectively.

• Angang Steel, Shougang Shuigang and Linggang Steel projects are expected to enter production during 2024–2025; planned start dates range from June 2024 to Q3 2025.

• A 50,000-tonne green-methanol demonstration project is planned, with biomass resources exceeding 1m tonnes secured and one project site established in Guangdong.

• Strategy centers on expanding from equipment and engineering into integrated services, supported by R&D, digitalization, strategic demonstrations and replication of proven models.