China Metallurgical Corporation takes "moving forward with steady growth under pressure, overcoming difficulties and seeking breakthroughs, and practicing internal strength and strong management" as the general tone of its development in 2023, and its main business indicators maintain a steady development trend:
- the newly signed contract value was 1,424.779 billion yuan, a year-on-year increase of 6.04%;
- operating income was 633.870 billion yuan, a year-on-year increase of 6.95%;
- the total profit was 13.765 billion yuan, a year-on-year decrease of 10.57%;
- the net profit was 11.406 billion yuan, down 11.8% year-on-year, and the net profit attributable to the parent company was 8.670 billion yuan, down 15.63% year-on-year.
- the return on net assets was 7.23%, a decrease of 3.24 percentage points over the previous year;
- net operating cash flow was 5.892 billion yuan, down 67.54% year-on-year;
- the asset-liability ratio was 74.61%, an increase of 2.27 percentage points year-on-year;
- The average salary per capita was 322,500 yuan/person, a year-on-year increase of 0.65%;
- The per capita income was 6.3834 million yuan/person, a year-on-year increase of 5.97%;
- The total number of employees was 99,300, a year-on-year increase of 0.93%.
Operating income
Focusing on "high-quality markets, high-quality customers, and high-quality projects", China Metallurgical actively promotes the transformation and upgrading of its business structure in accordance with the work requirements of "consolidating and upgrading the metallurgical business, optimizing and upgrading the housing construction business, and expanding and upgrading the infrastructure business", and the main operating indicators have grown at a high level. From 2019 to 2023, the operating income will increase year by year, with a compound annual growth rate of 16.97%.
Net profit
In terms of net profit, from 2019 to 2023, the compound annual growth rate of net profit will be 10.77%, showing an overall upward trend. In 2023, China Metallurgical will increase its revenue without increasing profits, with operating income increasing by 6.95% year-on-year, and net profit decreasing by 11.80% year-on-year to 11.406 billion yuan.
Business situation
The main business segments of MCC are engineering contracting, resource development, characteristic sectors and comprehensive real estate business. Among them, the engineering contracting business accounted for the highest proportion, accounting for 92.37% of the revenue, and the resource development business had the strongest profitability, with a business proportion of 1.08% and a gross profit margin of 30.99%. The gross profit margin of the featured business was the second, at 15.81%. MCC's characteristic businesses include engineering consulting and technical services, core equipment and steel structure business, and ecological environmental protection and operation business.
The layout of the area
In 2023, the revenue of MCC's overseas business will be 26.352 billion yuan, accounting for 4.16%, a year-on-year increase of 14.48%, and the gross profit margin of overseas business will be 24.03%, while the revenue of domestic business will be 607.518 billion yuan, accounting for 95.84%, a year-on-year increase of 6.65%, and the gross profit margin of domestic business will only be 9.24%. China Metallurgical is actively seizing the window period of global steel transformation, increasing the pace of "going out", and at the same time continuing to make efforts in the "Belt and Road" co-construction of the national market, and making important breakthroughs in market development.
Development strategy
With the goal of creating a world-class enterprise with global competitiveness, and aiming to build the best overall solution provider for metallurgical construction and operation with super core competitiveness, and the most reliable general contracting service provider for capital construction that is internationally renowned and leading in China, we strive to build the company into a world-class investment and construction group with strong value creativity, strong market competitiveness, strong innovation drive, strong resource allocation and strong cultural soft power. Firmly consolidate, optimize and improve the strategic path of "one core, two main bodies and five characteristics" business system. Promote the company's re-transformation and upgrading, and accelerate the realization of the goal of "one creation, two top five". Focusing on development with one hand, we will strive to build the echelon development pattern of "2358" sub-enterprises, strengthen and optimize the third-level enterprises, and strengthen the three-year action of basic management and improvement with the other hand, so as to promote the company to achieve sustained, healthy and rapid development in 2024.
How will MCC's 18 engineering companies perform in 2023, and which one is the most prominent?
This article only analyzes the main holding and shareholding companies of the three types of business natures disclosed by China Metallurgical in the 2023 annual report: "engineering contracting", "design, scientific research, engineering general contracting, etc.", and "survey and design". Due to the difference in the list of major holding and shareholding companies disclosed in the 2022 annual report and the 2023 annual report of China Metallurgical Corporation, the comparative analysis only selects 15 companies that have been on the disclosure list for two years, excluding China 19th Metallurgical Corporation, China Metallurgical Construction Research Institute and China Huaye.
01. Total assets
China Metallurgical Corporation and Shanghai Baoye are among the top two, leading in total assets.
In terms of total assets, there are two engineering companies with total assets of more than 50 billion yuan, namely 66.678 billion yuan of China Fifth Metallurgical Corporation and 62.036 billion yuan of Shanghai Baoye; the total assets of the engineering companies ranked third to seventh are all in the range of 30 billion to 40 billion yuan, namely China 20th Metallurgical Corporation, China 17th Metallurgical Corporation, China Metallurgical Transportation, China 22nd Metallurgical Corporation and China Metallurgical Tiangong; and the total assets of the other engineering companies are less than 30 billion yuan.
The total assets of 12 engineering companies increased year-on-year, and the growth rate of China's five metallurgical corporations ranked first.
In terms of the growth rate of total assets, the growth rate of total assets of China Metallurgical Corporation was the highest, reaching 41.34 percent, followed by the growth rate of total assets of China Metallurgical Construction Engineering Co., Ltd., which was 32.65 percent, the growth rate of total assets of China 17th Metallurgical Corporation, China 20th Metallurgical Corporation and China Metallurgical Wukan exceeded 20 percent, and the total assets of CCID, China First Metallurgical Corporation and China Metallurgical South decreased compared with the same period last year, but the decline rate was less than 5 percent.
02. Net assets
China Metallurgical Corporation and Shanghai Baoye lead the way in terms of net assets, followed by China Metallurgical South and China Seventeenth Metallurgical Corporation.
In terms of net assets, the net assets of China Fifth Metallurgical Corporation and Shanghai Baoye exceeded 10 billion yuan, with 13.884 billion yuan and 12.727 billion yuan respectively; the net assets of MCC Southern and China 17th Metallurgical Corporation were similar, both close to 10 billion yuan, with 9.890 billion yuan and 9.769 billion yuan respectively; the net assets of MCC Transportation were 8.575 billion yuan; the net assets of most of the remaining engineering companies were in the range of 4 billion to 7 billion yuan, and the net assets of three engineering companies were less than 3 billion yuan.
The scale of net assets of 13 engineering companies has increased, and the growth rate of China's 17th Metallurgical Corporation is the most obvious.
In terms of net asset growth, the growth rate of net assets of China 17th Metallurgical Corporation, China Second Metallurgical Corporation and China Fifth Metallurgical Corporation exceeded 30%, 33.93%, 32.73% and 31.80% respectively; the net assets growth rate of Shanghai Baoye and MCC Wukan exceeded 20%, 24.49% and 22.75% respectively; the net assets of China 20th Metallurgical Corporation and MCC Transportation decreased compared with the same period last year, of which MCC Transportation decreased the most, down 8.76% year-on-year.
03. Net profit
The net profit level of China Metallurgical Corporation is unbeatable.
In terms of net profit, the net profit level of China Fifth Metallurgical Corporation was 2.519 billion yuan, ahead of the second-ranked China 17th Metallurgical Corporation of China by more than 1 billion yuan; the net profit level of the four engineering companies of China 17th Metallurgical Corporation, Shanghai Baoye, China First Metallurgical Corporation, and China Metallurgical Construction Engineering Co., Ltd. was relatively close, all of them were in the range of 1 billion to 1.5 billion yuan; and the net profit level of the other engineering companies was below 1 billion yuan.
The net profit of 13 engineering companies increased year-on-year, and the growth rate of 3 engineering companies led by MCC Construction Engineering exceeded 70%.
In terms of net profit growth, the net profit growth rate of China Metallurgical Construction Engineering, China 22 Metallurgical Corporation and China Metallurgical Transportation is in the leading position, of which the net profit growth rate of China Metallurgical Construction Engineering is 75.22 percent, ranking first; China 22 Metallurgical Corporation and China Metallurgical Transportation are close behind, with 71.54 percent and 70.84 percent respectively; China ENFI, China Metallurgical Jingcheng and China Metallurgical Wukan Net profit growth rate is more prominent, all exceeding 40 percent; another 7 engineering companies have increased their net profits to varying degrees, with a growth rate of 10%-20% The net profit of MCC South fell sharply, down 36.89% year-on-year.
04. Return on net assets
The return on net assets of MCC Wukan and China First Metallurgical Corporation is more prominent.
In terms of return on net assets, the first echelon is China Metallurgical Wukan and China First Metallurgical Corporation, with a return on net assets of more than 20%, 21.86% and 20.45% respectively; in the second echelon, the return on net assets of China Fifth Metallurgical Corporation, China Metallurgical Construction Engineering and China 17th Metallurgical Corporation exceeds 15%, which is 18.14%, 17.79% and 15.11% respectively; another 8 engineering companies have a return on net assets of 10%, and the remaining 5 engineering companies have a return on net assets of less than 10%.
The profitability of 11 engineering companies has improved, and China Metallurgical Construction Engineering has increased the most.
In terms of the added value of return on net assets, the return on net assets of China Metallurgical Construction Engineering increased by 5.98% over the same period last year, with the largest increase in profitability; China 22 Metallurgical ranked second with an increase of 4.5 percent; China Fifth Metallurgical Corporation, China 17th Metallurgical Corporation, China Metallurgical South and China Second Metallurgical Corporation decreased their return on net assets compared with last year, and their profitability decreased.
Original: Coston Research Institute