\u3000\u3000 Shandong Hi-Speed Road&Bridge Co.Ltd(000498) (000498)
Event: the company issued 2021 performance express. In 2021, the company achieved a revenue of 57.223 billion yuan, a year-on-year increase of 66.17%; The net profit attributable to the parent company was 2.118 billion yuan, a year-on-year increase of 58.2%; The net profit attributable to the parent company after deduction was RMB 2.058 billion, with a year-on-year increase of 83.81%.
Many factors promote high performance growth. In 2021, the company’s revenue, net profit attributable to the parent and net profit attributable to the parent after deduction of non profits increased by 66.17%, 58.2% and 83.81% respectively year-on-year. The main reason is that the company has strengthened its market development force, continuously optimized its industrial structure, continued to consolidate the advantages of traditional road and bridge construction, grasped the general development trend of national infrastructure industry, actively explored business fields such as municipal administration, industrial parks, comprehensive development of urban areas, railway, water environment treatment and land consolidation, with sufficient orders on hand and an increase in high-quality projects, The ability to resist risks has been continuously enhanced. The project management level has been continuously improved, the cost reduction and efficiency increase measures have been actively implemented, the construction cost has been continuously reduced through standardized construction and internal resource allocation, and the profitability of the project has been gradually improved. Focus on making up for weaknesses. In 2021, there were more M & A enterprises compared with the previous year. The M & A enterprises gradually released their production potential and promoted the continuous improvement of the company’s operating performance.
In 2021, roe increased by 5.41pct year-on-year, and new orders increased by 53% in the first three quarters. In 2021, the company’s roe was 21.88%, an increase of 5.41pct compared with 2020, the best level since 2010. In the first three quarters of 2021, the company signed new orders of 65.904 billion yuan, a year-on-year increase of 52.82%. By the end of the third quarter of 2021, the unfinished part of the signed orders of the company was 97.73 billion yuan, which was 1.7 times of the company’s revenue in 2021. The future performance growth is guaranteed.
Shandong infrastructure helps development. In 2021, Shandong Province completed a total investment of 265.5 billion yuan in transportation fixed assets, with a year-on-year increase of 12.7%. The mileage of high-speed railway in Shandong Province reached 2319 kilometers, ranking the third in China; The mileage of expressway has reached 7477 kilometers, ranking sixth in China, and the proportion of more than six lanes has increased to 30%. In 2022, Shandong Province plans to complete 270 billion yuan of fixed assets investment in transportation, and the mileage of high-speed railway will reach 2400 kilometers. In terms of highway construction, Shandong will accelerate 13 expressway projects under construction, start the construction of 17 expressway projects with a total length of more than 1000 kilometers, such as the reconstruction and expansion of Jinan Heze section of Jinan Guangzhou expressway, and the traffic mileage of expressways in the province will exceed 7800 kilometers; We will promote the “four good rural roads” to improve quality and efficiency, and newly reconstruct 7000 kilometers of rural roads. In the first half of 2021, the company’s road and bridge construction revenue reached 20.188 billion yuan, accounting for 91% of the company’s total revenue. As a state-owned road and bridge construction enterprise in Shandong Province, the company is expected to fully benefit in the future.
Investment advice
It is estimated that the company’s EPS from 2022 to 2023 will be 1.46/1.53 yuan / share respectively, and the corresponding dynamic P / E ratio will be 5.5/5.2 times respectively, maintaining the “recommended” rating.
Risk tips
The risk that the implementation of the newly signed contract is less than expected; The risk that the market expansion is less than expected.
